Europe – The Global Cannabis Report 5th Edition

Adult-Use

Germany

The year 2024 was a historic one for the German cannabis industry as, following the adoption of the German cannabis control bill (CanG) on 1 April 2024, adults in Germany can legally enjoy possessing, consuming and cultivating cannabis at home under certain restrictions/conditions. Moreover, since 1 July 2024, cannabis cultivation associations have been able to apply for, and receive permits, to cultivate and distribute cannabis to its members, with the first association, Cannabis Social Club Ganderkesee, in the federal state of Lower Saxony, distributing the first legal cannabis to its members on 2 November 2024.

All of these new exciting developments in Germany are part of the country’s Two Pillar model on cannabis reform which aims to improve and protect public health, prevent addiction, tackle the illicit market and protect youth and children. With Pillar One already in motion, the cannabis industry is closely watching the Pillar Two model which aims to create commercial cannabis supply chain pilot projects. Although the Federal Ministry of Health (BMG) has not provided a detailed law on Pillar Two, on 11 December 2024, the Federal Ministry of Food and Agriculture (BMEL) issued the Consumer Cannabis Science Competence Ordinance (KCanWV) announcing that the Federal Office for Agriculture and Food (BLE) will be the competent authority to examine and grant research applications in the fields of consumer cannabis and industrial hemp, allowing universities, municipalities and companies to submit research applications for scientific pilot projects.

Recently, cities such as Hanover, Frankfurt, Wiesbaden and two Berlin Districts announced that they will be initiating scientific pilot projects and hoping to launch in the first half of 2025. However, it remains to be seen how these research/pilot projects will be established. Additionally, on a political level many of the conservative leaning parties, such as the Christian Democratic Union of Germany (CDU)/Christian Social Union in Bavaria (CSU) and Alternative for Germany (AFD) are calling to halt and reverse cannabis legalisation in the country, which is rather worrying as these parties are growing in popularity with early polls suggesting that they will hold the majority in the 2025 federal election. Thus, there has been ongoing pressure from cannabis industry operators and advocates for the federal government and its relevant authorities to speed up the launch of research pilot projects.

Pillar One – What is Allowed?

Possession & Home Cultivation

• Adults may possess 25 grams of flower/hash in public
• Adults may possess 50 grams of flower/hash at home
• Adults may possess 25 grams of flower/hash in hand luggage on domestic flights and trains
• Adults may cultivate no more than three plants (per person) at the place of residence

Consumption

• Consume cannabis privately at home
• Consume cannabis in pedestrian zones between 20:00 and 07:00

Cannabis Associations

• Distribution of maximum of 25 grams a day and 50 grams a month to its members aged over 21
• Distribution of maximum of 25 grams a day and 30 grams a month to its members aged between 18 and 21
• A maximum of 500 members over the age of 18
• Sell propagation material (from community cultivation) to non-members, and other growing associations

Pillar One – What is Forbidden?

Possession & Home Cultivation

• Exceed private (50 grams) and public (25 grams) possession limits
• Exceed three plant cultivation limit
• Distribute, share (even in a joint), provide, sell, give cannabis to a third-party
• Solvent-based extraction

Consumption

• Consume cannabis within the sight (100 metres) of children, schools, playgrounds, youth facilities, public sports facilities, cultivation associations
• Consume cannabis in pedestrian zones between 07:00 and 20:00

Cannabis Associations

• Distribute, sell, and provide cannabis to non-members or those under 18
• Provide cannabis over 10% THC to people aged 18-21
• Distribute cannabis mixed, combined or passed individually with tobacco, nicotine, food, feed or other additives
• Consume cannabis on the premises
• Exceed monthly allowance of members
• Solvent-based extraction

Pillar One in Motion

Pillar One of cannabis legalisation in Germany occurred in two stages: firstly, the adoption of the CanG, and with it, its associated consumer cannabis law (KCanG), on 1 April 2024, and secondly, the application roll-out for non-profit cannabis cultivation associations on 1 July 2024. The adoption of CanG has already made a significant impact in the country as the government has updated THC driving limits, federal states have published new fines associated with cannabis, and due to the law being applied retroactively, the country has seen prison releases and sentences/fines being expunged.

Although there have been favourable outcomes for cannabis consumers from Pillar One, there are a few rules and regulations that many in the industry are deeming irrational, such as not allowing consumers to share a joint or extract cannabis using solvents.

Driving Limits

After the Bundestag voted to amend the Road Traffic Act on 6 June 2024, the Federal Council voted to approve the amendments which raised the THC limit for drivers from 1 nanogram per millilitre (ng/ml) to 3.5 ng/ml of THC in the blood serum. Those who exceed the limit, or are found to be under the influence of both alcohol and THC, face the possibility of a fine and their licence being revoked, with harsher restrictions set for novice drivers. With regard to medical cannabis patients the THC limit does not apply as, under the Road Traffic Act, no administrative act has been committed if a driver is prescribed a drug for an illness and is not impaired to drive. The limit rate was proposed by an expert panel that decided that 3.5ng/ml of THC is comparable to the alcohol limit and it would avoid punishing those who have not driven under the influence but may still have THC in their system. However, it must be noted that frequent/heavy consumers of cannabis may continue to face issues as, although they may not be intoxicated while driving, they could still hold levels of THC above the legal limit.

Amnesty & Prison Releases

As the CanG, which came into effect on 1 April 2024, is a retroactive law, persons who were previously convicted of cannabis crimes, which would no longer be criminalised under the new framework, can potentially get their past convictions reexamined, expunged or reduced. One month following the adoption of the law, in May 2024, it was announced that over 125 people had been expunged, highlighting the fast nature of the amnesty ruling in the country and providing a strong example of how a country, that is aiming to legalise cannabis, may adopt an amnesty ruling.

Additionally, from the 1 January 2025, people who have a recorded conviction on the Federal Central Register for possession of up to 25 grams of cannabis, will be able to have their cases deleted, upon request, if the public prosecutor grants the application.

However, it must be stated that, as the judiciaries have to review a national total of roughly 270,000 individual cases, many states have felt that the process has been a strenuous task for state justices, based on the workload. On the other hand, once all of the cases are reviewed, this level of burden is expected to dissipate as there will be fewer cannabis-related proceedings in the future.

Fines

With regard to fines for administrative cannabis offences, it is under the discretion of federal states to impose and determine the charge of individual offences with the maximum fine set at €30,000 for worst-case scenarios. As fines slightly differ on a state-by-state basis, it creates a regulatory patchwork of fines in the country. Nevertheless, in general, people caught smoking in prohibited zones or in front of a minor, can typically face a charge of €500 and €1,000 respectively, with charges increasing for repeated offences. Offences which hold the largest fines (€30,000) are attributed to cannabis associations, such as for advertising as well as for the import of non-EU seeds for commercial purposes.

Cultivation Associations

Since 1 July 2024, cannabis cultivation associations have been able to apply for permits to begin operations, with the first cannabis being distributed by Cannabis Social Club Ganderkesee in the federal state of Lower Saxony on 2 November 2024. As of the first week of January 2025, federal state authorities responsible for cannabis associations have received over 441 applications with 14 federal states granting a total of 90 permits.

North Rhine-Westphalia has seen the highest number of approvals of cannabis associations in the country with 25 associations receiving a permit. This is followed by Lower-Saxony (20), Rhineland- Palatinate (10), Saxony (7), Saxony-Anhalt (6), Brandenburg (5) and the states of Baden-Württemberg, Hamburg, Mecklenburg Western Pomerania, Hesse, Schleswig-Holstein, Thuringia, Berlin and Bremen all granting three permits of less each. In Bavaria and Saarland no cannabis associations have been granted a permit although 34 associations have applied for a licence in those regions. The disparity between state approvals is driven by the differences regarding application requirements, as seen in Bavaria, where prevention officers must undergo training provided by the State Office for Health and Food Safety (LGL) which has only been made available since September 2024.

First Cannabis Association

On 2 November 2024, the Cannabis Social Club, Ganderkesee, in the federal state of Lower Saxony, distributed the first batch of cannabis to its members. The association announced that it expects up to 100 members, who have paid into its membership in advance, and boasts a waiting list of 1,000 people. The club claims to have a diverse range of members ranging from 18 to 76 years.

The membership is free of charge, however, members must make individual (€250 or €500) or monthly contributions (€50 to €500), which members can use as credit, combined with a percentage discount, depending on the level of contribution, with the maximum discount set to 30%.

Members of the Ganderkesee social club can now legally purchase flowers, cuttings and seeds from six different cannabis strains with a THC content ranging from 9%-25% THC. Prices for flowers range from €8-€12 per gram, seeds from €6.70 – €9.80 per seed and cuttings are €12 per piece.

Where is Pillar Two?

Pillar Two of the cannabis legalisation process in Germany aims to test cannabis sales in speciality retail stores nationwide through a comprehensive and detailed law laid out by the Federal Ministry of Health (BMG). According to the BMG, the federal government is currently preparing the second pillar law which they say, ‘involves complex technical and legal issues and requires coordination between departments’. However, there has not been any update in this regard and stakeholders do not expect it to be implemented before the upcoming snap federal election, potentially dismissing the project altogether.

At first, it was only speculated that due to a scientific research clause in the CanG, the Federal Ministry of Agriculture and Food (BMEL) would assign the Federal Office of Agriculture and Food (BLE) as the responsible authority for permits, monitoring and implementing regulations for pilot projects, without the need for a secondary law. These hopes came into fruition on 11 December 2024, as the BMEL issued the Consumer Cannabis Science Competence Ordinance (KCanWV), which assigns the BLE as the responsible authority for research applications for industrial hemp and adult-use cannabis. This opens the doors for successful applicant, universities and companies to conduct research projects for adult-use cannabis and industrial hemp similar to those seen in Switzerland. Although this provides room for smaller regional pilot projects in the country, it must be stated that it does not replace pillar two in creating a nationwide experimental framework of a regulated adult-use cannabis supply chain in Germany. However, on a positive note, it allows for regional studies and projects to be conducted in 2025 to examine controlled adult- use supply chains’ effect on the illicit market, public health and youth protection.

Although there is no clarity regarding a Pillar Two framework or what research projects will be conducted, several cities including Wiesbaden, Frankfurt, Hanover and two districts in Berlin have announced that they intend to commence pilot projects in 2025. In August 2024, the city of Wiesbaden announced it had signed a letter of intent to implement a pilot project allowing participants (residents) to purchase adult-use cannabis in pharmacies, with 15 pharmacies already expressing their interest in participating.

The project would be led by Cannabis Research Germany (CFD), a partner association of Swiss Cannabis Research, which leads a pilot project in Zurich. At the end of October 2024, it was also announced that Frankfurt and Hanover published letters of intent to launch five year controlled commercial cannabis pilot projects to gather data and evaluate drug policy reform in the country. The project, planned in Frankfurt, in collaboration with the Frankfurt University of Applied Sciences, aims to study how offering adult- use cannabis through four specialised stores at a competitive price (€10) to eligible citizens will have an impact on the illicit market.

The project in Hanover, which is supported by the Clinic for Psychiatry, Social Psychiatry and Psychotherapy at Hanover Medical School, plans to recruit 4,000 participants and aims to study the effect of regulated cannabis sales on individual consumer purchasing behaviour of cannabis products, alongside the impact on health, youth protection and the illicit market.

In December 2024, it was announced that two Berlin districts, Friedrichshain-Kreuzberg and Neukölln, plan to implement a scientific pilot project on the sale of adult-use cannabis through licenced dispensaries. The five-year observational study aims to study the effectiveness of harm reduction through legal adult-use channels. Professor Dr. Dr. Christian Ulrichs, Head of Urban Plant Ecophysiology at the Humboldt-Universität zu Berlin will be the scientific lead for the project. While the operational management of the dispensaries will be conducted by the German-based cannabis operator Sanity Group, which is also involved in the Grashaus Projects pilot project in Basel-Lanschaft, Switzerland.

Although cities have already announced their intent to participate in pilot projects in Germany, there remains an amount of uncertainty on their development as currently, the German government (Traffic Light Coalition) has slowly been losing its favourability among voters, with conservative and right-leaning parties, who hold an anti-legalisation stance, such as the CDU and AFD, gaining in popularity. Additionally, on 16 December 2024, the German Chancellor, Olaf Schulz lost a confidence vote in parliament which was driven by infighting within the traffic light coalition parties (Free Democratic Party (FDP), Social Democratic Party ( SPD) and the Greens). Thereby setting the stage for earlier federal elections in February 2025 which may hinder and restrict pilot project developments, especially if anti-legalisation parties gain a majority in the government.

Switzerland

On 15 May 2021, the amendment of the Federal Act on Narcotics and Psychotropic Substances (NarcA) which provides the legal basis for conducting scientific pilot trials for adult-use cannabis came into effect. Following the amendment, in January 2023, the first pilot project, ‘WeedCare’ commenced in the Swiss canton of Basel-Stadt allowing participants to purchase adult-use cannabis in participating pharmacies. As of December 2024, the Federal Office of Public Health (FOPH) has approved seven pilot programmes. These pilot projects, in general, assess: the effect that commercial/regulated adult-use cannabis sales have on public health, consumer behaviour, tackling the illicit markets and public safety in which participants must meet eligibility criteria (over 18 years of age, not pregnant, having consumed cannabis etc.) and undergo ongoing interviews and questionnaires to provide health and societal impact information to assess the outcomes.

WEEDCARE

Commencing on 30 January 2023, the WeedCare pilot project in the canton Basel-Stadt is a two-and-a-half-year study conducted by the Health Department of Basel-Stadt, the University Psychiatric Clinics, the Psychiatric Services Aargau and the University of Basel that examines the health effects of regulated cannabis sales as compared to the illicit market. The study examines the health effects of regulated cannabis on 378 participants in which half of the participants have been able to purchase at pharmacies from the start of the project whereas the other half could only do so six months after the start of the experiment in order to investigate consumption behaviour and health between the two groups. Participants have the choice of four cannabis flower products and two hashes which Pure Holding AG produces with prices ranging from CHF 8 – CHF 12 per gram. In March 2024, the first interim results of the study were published showing that 41 kilograms had been sold and that participants, on average, consumed 1.2 grams per day on 20 days per month.

Additionally, results from surveys showed that 94% of participants were highly satisfied with purchasing cannabis at pharmacies; however; participants held lower satisfaction levels on the range (57%) and quality (69%) of products which may have led to 49% of participants continuing to consume illicit cannabis. The results also showed that 40 participants had to drop out with the majority (25) having their study ID blocked due to non-completed questionnaires, and 15 others leaving on their own accord for reasons such as product dissatisfaction, moving canton and quitting consumption. However, no participant had to be excluded due to a deterioration of health as overall no incidents or an increase of consumption were observed. The study is planned to end in July 2025, when a final report will be prepared.

ZÜRI CAN

Züri Can is a pilot study conducted by the City of Zurich and the University of Zurich that investigates how regulated sales of adult-use cannabis in Zurich affect participants’ health. The first sales of the study commenced in August 2023 and it examines how three different sales channels (pharmacies, drug information centres, and social clubs) affect participant health and consumption behaviour. The study is a three-and-a-half-year study and is planned to end in October 2026. Within the study, the participants had the opportunity, based on a first come first served basis, to select whether they would like to purchase their cannabis from one of the ten pharmacies, ten social clubs or from the city’s Drug Information Centre. As of 11 December 2024, 2,192 participants are enrolled in the study with 79.4% being male, 19.1% female and 1.5% identifying as non-binary. Within the study, participants are able to purchase ten flower and three hash products with a range of THC and CBD ratios which are produced by Pure Production AG and Swiss Extract AG. The prices for these products range from CHF 7.20 – CHF 9.60. In total roughly 424 kilograms of adult-use cannabis has been sold in the study.

GRASHAUS PROJECTS – BL

Organised by the Swiss Research Institute for Public Health and Addiction of the University of Zurich, and funded by the Sanity Group, Grashaus Projects is a five year observational study that examines how the sale of high-quality adult-use cannabis, sold by trained personnel in cannabis dispensaries, can be implemented in Switzerland and how it may have an impact on harm reduction, consumption behaviour, mental and physical health, quality of life, societal change and influence on the illicit market. In the study, participants in the canton of Basel-Landschaft, can purchase adult-use cannabis, including nine flowers, two hashes, two edibles, two vapes, and two oral extracts produced by SwissExtract from one of two dispensaries located in Liestal and Allschwil. The first sales of the study commenced in the Allschwil dispensary in December 2023 with the second store in Liestal opening its doors in February 2024. In August 2024, seven months following the start of sales, it was announced that roughly 1,000 people, out of the maximum number of 3,950 participants, have been included in the study. The study also published its first interim evaluation which found that participants decreased the number of times they consumed cannabis from illicit sources from 20 days to 10 days a month and that consumption methods had been decreasing to safer use options with flower sales decreasing, while extract-based products increased by 50%.

CANN-L

The Cann-L pilot project based in Lausanne and organised by the City of Lausanne and Addiction Suisse, is a three-and-a-half-year study that aims to assess the feasibility and impact of regulating cannabis through non-profit sales. It seeks to provide the best possible model for the regulation of cannabis through various pilot tests to examine the advantages and disadvantages of various models as compared to the illicit market. It evaluates participant consumption behaviour and associated health effects and its impact on the illicit market. The study has a maximum participation size of 1,600 participants who are able to purchase cannabis from the non-profit outlet store in the city of Lausanne. The cannabis products (flowers & resin) for the study are cultivated in a secret 10,000 m² greenhouse located in the French-speaking region of Switzerland and are sold for CHF 9-12 per gram. The first sales commenced on 11 December 2023, with the study highlighting that it sold 4.5 kilograms of cannabis in its first month. As of December 2024, the study now holds over 1,200 participants, with the first assessment results showing that participants are moving towards products with slightly lower THC levels as compared to products they would have purchased on the illicit market. In November 2024 the pilot sold over 10 kilograms of cannabis accounting for almost 15% of the volume consumed in Lausanne.

LA CANNABINOTHÈQUE

La Cannabinothèque is a pilot project located in the municipality ofVernier in the canton of Geneva, that has a maximum participation size of 1,080 and is organised and funded by the ChanGE association. The observational study aims to investigate how the access to regulated cannabis, with the knowledge of cannabis use, affects cannabis purchasing behaviour and its impact on public health and society. Sales for the project began in December 2023, where participants have been able to purchase cannabis from the non-profit-store in Vernier which offers addiction and consumption advice along with cannabis products which are cultivated in a secret 10,000 m² greenhouse located in the French-speaking region of Switzerland, similar to the Cann-L pilot project. As of November 2024, there are roughly 900 participants in the study, of which 80% are male.

SCRIPT

The SCRIPT (Safer Cannabis Research In Pharmacies Trial) study, is an adult-use cannabis pilot project conducted in the cities of Bern, Biel and Lucerne, and is organised by The University of Bern and The University of Lucerne. The study aims to examine the behavioural and health effects of regulated cannabis consumption through the sales in pharmacies. Additionally, it will examine the effects of tobacco use and smoking associated with cannabis consumption and how trained staff may have an effect on lowering or quitting tobacco consumption as well as helping participants to shift to alternatives such as vaping through education, advice and support. In April 2024, the first regulated sales commenced in Bern allowing roughly 700 participants to purchase cannabis, which included four flower, two resin, two tincture spray and two e-liquid products produced by Pure Production AG, in selected Bern pharmacies. In June 2024, sales also began in selected pharmacies in Biel and Lucerne.

CANNABIS RESEARCH ZURICH

The Cannabis Research Zurich pilot project is currently the largest adult-use cannabis study in Switzerland with residents from 34 municipalities in the canton of Zurich allowed to participate in the trial. The study has a maximum participation size of 7,500 of which 5,000 will have access to legal adult-use cannabis (through pharmacies and dispensaries) and the other 2,500 participants will serve as the control/comparison group who will access their cannabis through illicit channels. The study aims to investigate the social and economic impact of regulated cannabis sales as well as the effects of a self-regulation programme for excessive cannabis consumption. In terms of points of sale, there are eight pharmacies and three dispensaries participating in the trial. With regard to products, the study has a large product portfolio with six flower products, two hash products, four vape products and six extract products available which are manufactured by SwissExtract AG, Alphina Pharma AG and Charlie’s Lab GmbH with prices ranging from CHF 7-12 per gram for flowers, CHF 10-12 per gram for hashes, CHF 40 for vapes, CHF 75- 149.9 per 10 millilitre of oral extract. In May 2024, the first sales of the study began in seven locations including Winterthur, Zurich, Schlieren and Horgen to around 2,500 participants of the study.

Netherlands 

The Netherlands is currently in the early stages of its Controlled Cannabis Supply Chain Experiment. This experiment will run over multiple years, and will trial a system whereby all of the coffeeshops in ten municipalities will source all of their cannabis from ten selected producers. The basis of this experiment is to create a closed supply chain within the Netherlands, where the selected producers will cultivate and manufacture cannabis and hash products to meet the entire demand of the coffeeshops in the participating municipalities, with no role for the illicit market, which has traditionally supplied these coffeeshops.

In December 2023, coffeeshops in two of the municipalities, Breda and Tilburg, began selling cannabis from the experimental legal supply chain alongside the cannabis they source from the illicit market. In June 2024, the remaining eight municipalities followed suit. Of the 75 total coffeeshops across all ten municipalities, at least 70 are actively selling cannabis from the legal supply chain.

The next phase of the experiment is due to begin on 7 April 2025. From this date, all 75 of these coffeeshops across the ten municipalities will only be permitted to sell products sourced from the regulated supply chain. This is the main phase of the experiment, and is due to run for four years.

Successes and setbacks

The results of the experiment so far have been positive. In April 2024, only 15% of the cannabis sold in Tilburg was legally grown.This percentage had risen to 44 % by August. According to a spokesperson for the municipality of Breda, similar percentages have also been achieved there. Consumers in both municipalities are increasingly opting for regulated cannabis, and feedback from coffeeshop owners has been positive, according to the same spokesperson.

The current phase of the experiment, where coffeeshops in the participating municipalities can source from both the legal supply chain and the illicit market, was initially due to end in September 2024, at which time the next phase of the experiment was then scheduled to start. After a period of uncertainty regarding when the transition to the new phase would take place, the revised date of 7 April 2025 was announced in December 2024, giving clarity to the stakeholders involved. The reasons for this delay concern primarily the quantity, but also the diversity and quality, of the products currently being produced by the licensed producers.

Quantity

There are currently four producers supplying the experiment – Aardachtig, CanAdelaar and FYTA, which began supplying from December 2023; and Hollandse Hoogtes, which only began supplying in September 2024. Five producers are due to be supplying the experiment before it moves into the next phase, whereupon the remaining producers will have nine months to bring their supply online, or risk having their licence for participation in the experiment revoked. Three of these growers are currently reported to be on track to be able to start delivering products in April 2025.

In order to ensure sufficiency of supply, the authorities determined that a minimum weekly supply of 570 kilograms of cannabis and 160 kilograms of hash must be produced, and that there must be a total of at least 6,800 kilograms and 2,000 kilograms of hash in stock.

Diversity

As part of the monitoring process of the experiment, questionnaires were distributed to all coffeeshop owners in participating municipalities. Of those owners, 65% filled out and returned the questionnaires. One thing which was highlighted by these owners was that there is insufficient diversity of products from the legal supply chain currently to meet demand. It was indicated by these owners that in order to provide a sufficiently diverse supply for customers, more than three growers would have to be ready to supply. As well as this, mayors of the participating municipalities have also expressed concerns about an insufficient diversity of supply.

Quality

While most coffeeshops were satisfied with the quality of cannabis products provided from the legal supply chain, the quality of hash products was still perceived to be insufficient. Hash sold in coffeeshops in the Netherlands has traditionally been imported from Morocco, rather than being produced within the country or in neighbouring countries, so bringing illicit market expertise into the legal supply chain is not as straightforward as with cannabis.

Future Outlook

Though the delays in the experiment are not ideal, they are by no means critical, nor entirely unexpected. The mayor of Breda, Paul Depla, told Prohibition Partners in February 2023, that it was going to be a challenge to achieve the required quality of hash.

Getting cannabis cultivation facilities to produce high quality cannabis in high volumes is always a timely process. The start of the current phase of the experiment was also delayed by months from its originally planned start date. The experiment is still progressing, and with legal products increasing, as a proportion of purchased products, and the fourth grower coming online, positive developments are still ongoing. The new date given for the start of the next phase of the experiment has given clarity to all involved and will help to focus efforts around a specific timeline.

The Czech Republic

As one of the most progressive countries in the region in terms of drug policy, with the decriminalisation of cannabis possession back in 2010 and legalising medical cannabis in 2013, there have been ongoing developments in the last two years by advocacy groups, the government and its political parties including the Civic Democratic Party (ODS) and Pirate Party in creating and implementing new adult-use cannabis regulations that aim to improve public health, combat the illicit market, and boost the economy. Following the legalisation by its close neighbour, Germany in April 2024, there is a growing momentum in the country that the Czech Republic may follow suit soon.

In September 2022, the Czech Government assigned the National Drug Coordinator at the time, Jindřich Vobořil, to prepare a law regulating cannabis. Mr Vobořil, who is also a member of the ODS, a party which is a part of the current four-party (The Pirates left the previously five-member coalition in September 2024) government coalition ‘Together’ (Spolu in Czech) which is also comprised of the Christian Democrats (KDU-ČSL), the liberal democrats (TOP 09) and the Mayors’ Alliance (also liberal), had set to deliver detailed cannabis reform by early 2024. During the early periods of the process, there were several disagreements within the coalition, as although cannabis legalisation was favoured by many in the government, including having the support of the president-elect, Petr Pavel, members of the KDU-ČSL disagreed with the creation of a regulated market as they considered cannabis sales a threat to society. Although not all parties saw eye to eye on cannabis legalisation, in April 2023, the government approved the 2023-2025 Addiction Policy Action Plan which included policies that are based on science and a balanced concept of risk and harm reduction.

Following governmental approval to create a draft law in April 2023, there was a coordination of expert meetings and groups who worked on how a regulated commercial market should be implemented with proposals centred around the authorisation of the domestic and commercial cultivation of cannabis, the establishment of special clubs for recreational use, and the licensed sale in shops for those over 18.

On 10 January 2024, Mr Vobořil presented the first draft towards cannabis reform at an expert group meeting which took a similar approach, as seen in Germany’s Pillar One, by setting regulations for home cultivation and cannabis social clubs and dismissing a framework for a regulated market. This brought forth an outcry by cannabis groups, including The Czech Hemp Cluster, the Legalizace. cz Association and the Safe Cannabis Association, condemning the decision to depart from a regulated market. This outcry, however, was later uncovered as a tactical campaign to put pressure on the KDU-ČSL, the only party in the coalition that opposes the establishment of a commercial market. During this period, these cannabis groups established the cannabis advocacy non-governmental organisation (NGO), Racionální regulace (Rational Regulation) also known as RARE, to put pressure on the government to continue adopting the regulation of a commercial adult-use cannabis market. Later in the year, in March 2024, it was announced that the National Drug Coordinator at the time, Jindřich Vobořil, had prepared two separate bills for cannabis legalisation, one including a fully regulated market and another without, and would submit both to the government.

In mid-July 2024, it was announced that the National Drug Coordinator, Jindřich Vobořil, would step down from his role and serve as a strategic advisor for Prime Minister Petr Fiala, in which he would also advise on the regulation of adult-use cannabis in the country. Coincidently, at the same time, it was leaked that the Czech Government would be pursuing a full commercial adult-use cannabis market as part of its ‘Cannabis Management Act’ which contends with European and International Law, an issue that Germany was facing in the lead up to legalisation.

The Cannabis Management Act envisions a strictly regulated market which consists of the following three pillars:

• Home Cultivation
• Cannabis Cultivation Associations
• Regulated Market

As the Cannabis Management Act aims to combat the illicit market while still prioritising public health and the safety of minors, only those over the age of 18 would be able to apply for a special permit for one of the three pillars mentioned. These would be issued by the Government Office through a state register, for a fee. The amount of cannabis an individual would be able to possess would be dependent on the permit they hold, with non-holders being able to possess up to 10 grams legally. If an individual holds any of the three licences they will be able to possess 30 grams in public and up to 180 grams if they are registered members of an association or commercial establishment. Whereas, those who have a permit to cultivate at home can possess up to 1,500 grams.

Following the announcement of the Act, Prague’s University of Economics and its Faculty of Business Administration, published an in-depth study into the cost-benefit of the current models proposed by the former National Drug Coordinator, Jindřich Vobořil, which foresaw a framework which allowed home cultivation and social clubs only (similar to Germany’s Pillar One) and a regulated commercial market mentioned in the draft bill, the Cannabis Management Act.

The study suggests the following net benefits based on the following models:

• Home Cultivation Only: Net benefit of Czech Koruna (CZK) 1.2 billion (€47.4 million) annually and CZK 16.5 billion (€651 million) over the first 11 years.
• Home Cultivation & Associations Only: Net benefit of CZK 1.5 billion (€59.2 million) annually and CZK 20.8 billion (€821 million) over the first 11 years.
• Regulated Commercial Market, Home Cultivation and Associations: Net benefit of CZK 2.6 billion (€120 million) annually and CZK 20.8 billion (€1.6 billion) over the first 11 years.

According to the study’s findings, if cannabis were legalised based on any of the models, the quality of cannabis would significantly improve and would reduce the negative impact of the illicit market.

It is planned, according to the Addiction Policy Action Plan, that a regulated cannabis market as envisioned in the Cannabis Management Act, would be introduced by the end of 2025, however, its development remains in a negotiation limbo in the government, as there continues to be opposition for the establishment of a commercial adult-use cannabis market, especially from the KDU-ČSL.

Other Countries

In Malta, the first non-profit Cannabis Harm Reduction Association (CHRA), KDD society, began distributing cannabis flowers to its registered members, in which they can purchase up to seven grams of flower daily and up to 50 grams a month. In October 2024, the Chief Executive Officer (CEO), Among Vella, of the Authority for the Responsible Use of Cannabis (ARUC), the authority responsible for CHRAs, told the ‘Times of Malta’ that it was examining the introduction of safe spaces for consumption within associations as well as the possibility of allowing CHRAs to sell other forms of products including resins and edibles. As of November 2024, ARUC has issued operating permits to 11 associations.

Medical Cannabis

Germany

As of 1 April 2024, the new CanG Act came into effect, which also included the new medical cannabis law in the country known as the MedCanG Act. The most significant changes to the regulations which are having a profound effect on the medical cannabis framework in the country are stipulated in Article 2 (MedCanG), Article 3 (Amendment to the Narcotics Act) and Article 4 (Changes to the Narcotics Prescription Ordinance) of the CanG Act. Under the new regulations, many of the previous medical cannabis bottlenecks associated with production, distribution, patient access and research have been lifted, fuelling growth and competition in the market.

Patient access has been made significantly easier in the country as cannabis is now classified as a prescription drug and no longer deemed a narcotic, thereby relieving burdens on prescribers and patients. The new changes ease the prescribing process for practitioners as they reduce the previously bureaucratic paperwork needed to issue a narcotics prescription as well as allowing medical cannabis prescriptions to be issued via e-prescriptions which has fuelled the growth of private-pay prescriptions via telehealth services. Although the accessibility of medical cannabis has never been easier for German patients, some officials such as the Health Minister of Lower Saxony, Andreas Philippi, have argued that regulations regarding cannabis prescriptions, through telemedicine, need to tighten up, as there is an open legal loophole which makes the acquisition of medical cannabis too easy for non-patients/recreational users. As the subject of cannabis legalisation is a contentious issue and highly politicised, the upcoming federal snap election in February 2025, in which the CDU/ CSU will most likely hold the majority in government could complicate the issue.

As the party has a strong stance against cannabis legalisation, there is the possibility that the country could see a more restrictive stance towards medical cannabis prescriptions, via telemedicine, as recently seen in Poland.

In terms of reimbursement, in July 2024, Germany’s Federal Joint Committee (G-BA), which is a public entity that is authorised to set regulations and directives on statutory health insurance funds, approved proposals which would streamline the process for doctors prescribing reimbursable medical cannabis prescriptions.

The new proposal approved by the G-BA, and with no objection from The Federal Ministry of Health, took effect on 17 October 2024 and eradicated the requirement of a reimbursement application for 17 specific medical specialists, including general medicine practitioners. Under the new framework, medical cannabis can be prescribed for those with statutory insurance and serious illnesses, if no recognised alternative treatments are available or applicable, and it has a positive effect on the patient.

Following the implementation of MedCanG, the main bottleneck associated with domestic cultivation, the tender process was removed. Previously, only players who were awarded the tender licence to cultivate could do so under restrictive conditions set out by the Federal Institute for Drugs and Medical Devices (BfArM).

However, the MedCanG has removed this condition allowing companies to apply for cultivation licences through the BfArM. Following the regulatory change, the previous tender winners; Demecan, Aurora and Tilray (Aphria RX), have now received licences under the new framework and are able to scale up their production, as well as provide a larger portfolio of products, as they are no longer obliged to meet certain product tender specifications outlined by the BfArM.

Although the new medical cannabis framework has opened the market for new and existing domestic cultivators and producers to operate in Germany, it will take some time for producers to scale and meet the growing demand. Thus, the market will still be import- reliant for the foreseeable future.

Since the implementation of CanG and MedCanG, which has removed cannabis from the Narcotics Act (BtMG) and eased the prescription process, there has been significant growth in private patient numbers and the demand for products, which has then fuelled an explosive growth in imports. In Q3 2024 alone, medical cannabis imports reached an all-time quarterly high of 20.1 tonnes.

This is a 71.9% rise compared to Q2 2024 and a 140% increase for the same period in 2023. Imports in 2024 are already totalling 39.8 tonnes, a 21.4% increase compared to 2023. However, it must be noted that the number of imports does not directly translate to units dispensed in pharmacies. As BfArM no longer gathers and discloses pharmacy sales of medical cannabis it is unclear how much is actually reaching patients. However, based on historical figures, it can be assumed that the number of imports is exceeding demand, as a certain amount of products are used for scientific research, re-export or are wasted.

When comparing the first nine months of 2024 (39.8 tonnes) to previous years, 2024 has already seen the largest number of medical cannabis imports, as Q3 2024 imports (20.1 tonnes) almost reached the total number of imports for the full year of 2021 (20.7 tonnes).

It can be expected that Q4 2024 imports will continue this pattern of growth, with the country potentially importing over 60 tonnes of medical cannabis for the full year of 2024, which would make the country one of the largest importer of medical cannabis globally, importing an amount larger than Israel and Australia combined, who, in 2023 imported 15.9 tonnes and 42.1 tonnes respectively.

In the full year of 2023, Germany received imports from 21 countries. Over half (51.9%) of German medical cannabis imports stemmed from Canada, followed by Portugal (12.6%), the Netherlands (7.9%), Denmark (7.2%), Australia (3.2%), Colombia (2.9%), North Macedonia (2.8%), Spain (2.4%), Lesotho (2.2%) and Austria (2.1%). In 2023, Germany, for the first time, witnessed medical cannabis imports from Ecuador and the United Kingdom, albeit on a very small scale (7 kilograms and 66 kilograms respectively).

When comparing 2023 with Q1/Q3 2024 German import figures, it is clear that the share of imports has witnessed some noticeable changes, with only 17 countries importing medical cannabis to Germany. Canada unsurprisingly took the lion’s share of imports, as medical cannabis imports from the maple tree nation reached 19.2 tonnes, accounting for 48.1% of the total imports for Q1-Q3 2024. This surpasses the number of Canadian imports in 2023 (16.8 tonnes) which was already double that of 2022. The rise of Canadian imports is mainly driven by Canadian suppliers who are turning to the international export markets; as they benefit from higher margins internationally as they witness declining medical sales and competition from the adult-use market domestically.

However, compared to 2023, Canadian imports lost over 3% of their market share. Imports from Portugal and Denmark increased significantly in the first three quarters of 2024, with both countries ramping up production and exporting 7.8 tonnes and 4.2 tonnes into Germany respectively. Imports from Portugal increased by 89% when compared to 2023, accounting for 19.6% of Q1/Q3 2024 German medical cannabis imports. Medical cannabis import from Denmark also increased as compared to 2023 by 79.4%, accounting for 10.6% in Q1/Q3 2024.

The Netherlands, which has traditionally held an important standing in the German medical cannabis supply chain has seen its number of imports decrease with Q1/Q3 2024 imports only reaching 1,227 kilograms which is a 51% decrease of the total imported in 2023.

Colombia, Uruguay, South Africa, Malta, North Macedonia, and Spain have all seen their imports into Germany increase in Q1/Q3 2024 as compared to 2023, whereas imports from Australia, Austria, Lesotho, New Zealand, the United Kingdom, and Israel have dropped.

Additionally, the first imports from Argentina (55 kilograms) and the Czech Republic (847 kilograms) occurred in 2024. However, in contrast to 2023, in Q1/Q3 2024, there have been no medical cannabis imports into Germany from Uganda, Poland, Ecuador, Switzerland and St Vincent/Grenadines.

It can be expected that, following the new MedCanG Act which has eased patient access, imports will continue to rise to meet growing demand. However, as the newly adopted MedCanG has removed the domestic cultivation tender process, there is a potential that domestic players will eat up some of the market share of imports as the country begins to ramp up its domestic production. To what extent domestic production will affect imports is still to be seen, especially compared to other countries who are ramping up production in Europe, such as Portugal, Spain and North Macedonia where production costs (land, labour, energy, water etc.) are low.

The United Kingdom

Over the past year, the pace of market development has been rapid in the UK, while the pace of regulatory development has been slow. On the supply side, domestic production is continuing to come online with several companies now cultivating flower commercially for the domestic UK market. Together with those companies that are manufacturing imported flower into finished products on UK soil, the domestic medical cannabis production footprint is growing.

Patient numbers continue to swell, as do the number of cannabis clinics which are being established to treat them. By the end of 2024, approximately 60,000 patients will have been treated with medical cannabis during the year, with the majority of them being currently active patients. There are approximately 40 clinics across the UK and Channel Islands which are actively prescribing cannabis, and a similar number of dispensing pharmacies. These are primarily online-only, cannabis-focused clinics, where patients do online consultations via video call, including initial consultations and follow-up consultations for repeat prescriptions.

The factors which currently constrain market growth in the UK are:

• Limitations on imports of finished medical cannabis products. Import licences are required for each shipment, and there is a vague maximum volume limit for each shipment. As well as constraining growth, this also pushes operators to import raw materials for manufacturing or even to cultivate domestically.
• Low numbers of prescribing doctors, relative to patient numbers. There are estimated to be between 200-300 doctors prescribing medical cannabis in the UK. Only doctors with a specialisation in a relevant field are eligible to prescribe cannabis. Doing so requires additional documentation, and there can be an increased element of personal responsibility and risk for the prescribing doctor.
• Private nature of the market. Most UK patients are accustomed to using the National Health Service (NHS) for healthcare, rather than using private clinics. As cannabis treatment is (for the most part) not available under the NHS, awareness of the potential for medical cannabis treatment is still growing in the UK. This also means that all treatment costs are paid for by the patient, instead of being largely or entirely covered by the state, which poses another barrier for many patients.

The only companies currently cultivating cannabis commercially for the UK market are: Celadon Pharmaceuticals and Glass Pharms, while Dalgety may achieve commercialisation soon.

Ananda Developments are also cultivating and manufacturing extract-based products, which are currently only being used in clinical trials.

The companies importing raw materials and carrying out manufacturing in the UK are: Curaleaf and Integrated Pharmaceuticals Services (IPS Pharma). Xeal Pharma carries out manufacturing for flower cultivated by Glass Pharms..

Some other companies are importing finished products from abroad, and rebranding them under their own name, e.g. Hilltop Leaf.

The Netherlands

The Netherlands are in the process of making changes to their medical cannabis landscape, however the scope of change is quite limited.

Between July and August 2024, a draft version of the new legislation was available for public comment. This draft legislation, and the responses to the public comment process, reveal the following information about the new system which will be introduced:

• All cannabis trade involving Dutch companies will continue to run through the Office of Medical Cannabis (OMC). This means that the OMC is officially the only seller of cannabis in the Netherlands, whether the buyer is from inside or outside of the country. This is because the law in the Netherlands states that only the minister is authorised to ‘bring cannabis into or outside the territory of the Netherlands’ and ‘sell and deliver it’. The only way that this would be changed is if there was a change to this law, which is not being considered.
• The current system for delivering cannabis to patients in the Netherlands will continue. This is under tender, without open competition, currently supplied exclusively by Bedrocan. This will continue to be the only way in which cannabis products for standard medical cannabis treatment in the Netherlands will be supplied. This is referred to as ‘Regime 1’.
• A new system,‘Regime 2’, which allows for the production of medical cannabis by any company in the Netherlands will be established. This cannabis can be used for:
  • Scientific and research purposes within the Netherlands.
  • Small-scale and incidental trade’ with organisations outside of the Netherlands.
• Under Regime 2, the quality regulations necessary for medical cannabis produced for Dutch patients (under Regime 1) will not need to be met. Instead, the three parties involved in the trade – the producer, the buyer, and the OMC – will sign an agreement regarding quality and standardisation requirements. Such an agreement will be signed for every transaction under Regime 2.
• What constitutes ‘small-scale and incidental trade’ is intentionally not clarified, with the vague language allowing flexibility for the OMC, in the future to decide what will be permitted for trade.

The outcome of the new legislation is that, the medical cannabis industry in the country for domestic supply will remain exactly the same, with supply produced under tender for the government. The OMC buys all produced cannabis for a fixed price, and sells it to pharmacies. The only current producer under this system is Bedrocan.

In parallel, a system for new supply intended for research and export will be created, which is open for participation and competition. However, the scope of activity permitted will be entirely at the discretion of the OMC, which will act as a conduit for all cannabis sold.

Poland

According to official data recorded by the e-Health Centre and released in 2024, the Polish medical cannabis market approximately tripled in size during 2023 in comparison to 2022, by a number of metrics. Consumption volume grew from 800 kilograms in 2022 to 2,600 kilograms in 2023; patient numbers grew from 36,000 to 90,000; and sales grew from €15 million to €42 million. According to the Polish minister of health, 1,000 kilograms of cannabis were prescribed in Q1 2024 alone.

Over the past number of years, the Polish market has grown steadily, but has been held back by a combination of factors. The process to get new products approved is lengthy, taking approximately two years per product, so the number of products available on the market is relatively low. Supply chain issues, on the part of the producers of those products, as well as in the Polish pharmaceutical distribution network, has meant that product shortages were common across the country. A lack of prescribing doctors and dispensing pharmacies, due to the bureaucracy and additional difficulty associated with prescribing and supplying medical cannabis, further reduced access. High prices, and a lack of reimbursement for patients, represented another significant barrier to treatment.

The recent rise in market activity is due to the improvement, with some of these factors, in terms of patient access. As more products become approved, and product suppliers establish greater consistency of supply, product shortages are reduced.

As prices for medical cannabis products come down, as they have across Europe due to an increase in low-cost supply, cannabis treatment becomes more affordable for patients in Poland. Perhaps the most significant factor driving the increase in cannabis treatment however, was the rise of telemedicine in Poland. During COVID-19, there was a rise in remote consultation and prescription in Polish healthcare. As was the case in other countries, this enabled a small number of doctors to prescribe to a larger number of patients than would be possible with only in-person consultation.

In response to the rapid rise of cannabis treatment, the health authorities in Poland recently restricted the use of telemedicine for medical cannabis prescription in Poland. New regulations, which came into force in November 2024, removed the ability of private clinics to offer remote consultations for medical cannabis prescriptions. Physicians, working within the public national health service, will still be able to offer remote consultations and prescriptions, provided the patient has previously had an ‘in-person’ consultation.

The effect of the new regulations has already become apparent as medical cannabis prescriptions in the country fell from 68,000 in October, to 42,000 in November, and 28,000 in December 2024. Highlighting a significant reduction in prescription numbers. Although growth has been stunted in the country due to telehealth restrictions it is predicted that the Polish medical cannabis market will continue to show growth in the long-term as more specialised cannabis clinics, GPs and specialists enter the market.

Other Countries

• In the Czech Republic new rules around prescription will allow general practitioners (GPs) to prescribe medical cannabis for chronic pain management. This is a change from the current system in which only specialists are eligible to prescribe. The new regulations will take effect from April 2025, and will expand access considerably to Czech patients suffering from chronic pain.
• In France a last-minute amendment to the 2025 budget allowed the medical cannabis trial programme to be extended in its current form for another 6 months, ending in July 2025. This will mean that roughly 2,000 patients already being treated with medical cannabis in the country can continue their treatment, however with the caveat that they should seek alternative medicines for treatment. While many were hoping for the expansion and generalisation of cannabis treatment in France, this new announcement by the French Ministry of Health indicates that its progress may be stalled completely, unless a revision takes place within the 6 month period.
• In Spain a new law set to be passed in the coming months will set the framework for the treatment of medical patients in specific, limited circumstances. Specialist doctors will be able to prescribe cannabis treatment to patients whose pathologies have not responded well to authorised medications. Cannabis treatment will be highly personalised and patient-specific, and will have to be periodically reassessed. Cannabis products must be processed in magistral hospital pharmacies.
• Early in 2024, Greek patients were able to access medical cannabis treatment for the first time. Only domestically produced products are available for use. The only commercially active producer currently is Tikun Olam, which has a small number of products approved, with a relatively high cost per product.
• In Denmark, it was announced that the country plans to make its medical cannabis access scheme permanent, following the end of its trial period in 2025.
• In Switzerland, the focus is primarily on the adult-use trials. A relatively small medical cannabis market persists, supplied by exports and limited domestic products.
• In Ukraine, a framework for medical cannabis access was established in August 2024. In January 2025, the first medical cannabis products were added to Ukraine’s State Register of Medical Products which include three full-spectrum oils from Curaleaf, two balanced oils with either 10mg/ml or 25mg/ml of THC and CBD, and one with just 25mg/ml of THC. Thus, it is expected that more product registrations will follow and that the first products will be available in pharmacies in early 2025. Domestic production is intended to supply the market eventually, however the ongoing conflict is limiting activity.
• In Italy, the status quo remains in the medical market. Volumes of flower used in treatment are declining slightly according to the most recent figures released by the government, potentially because of the import of bulk oil products.
• Portugal remains a significant exporter of medical cannabis, while domestic patient numbers grow slowly, with several products now available for use in treatment.
• In Slovenia, despite having legalised the medical use of cannabis in the country some years ago, treatment of patients with medical cannabis is almost non-existent. A referendum in June 2024 asked Slovenian voters two questions: whether the cultivation and processing of cannabis for medical purposes should be allowed, and whether cultivation and possession of cannabis should be allowed. Majority of voters answered ‘yes’ to both questions, and these reforms are expected to be brought in with new legislation.

CBD

The European CBD industry continues to operate in a relatively ‘grey’ legal space. CBD products are available in mainstream retail, but are not being sold by mainstream food brands or manufactured by standard food and supplement producers, due to questions of legitimacy related to the lack of novel food authorisation for CBD in Europe. The main growth segment of the market is hemp flower, with authorities taking different approaches to the issue of regulation. Semi-synthetic cannabinoids, like hexahydrocannabinol (HHC) are being steadily cracked down upon, across the continent.

In France, the only legal issues which retailers and distributors of CBD are currently facing revolve around the sale of products with THC levels higher than the permitted 0.3%. A ban on CBD derivatives and synthetic cannabinoids, such as HHC, came into effect in 2024, ending the growing market for these substances. France has also submitted a proposal to the European Chemicals Agency to ban CBD at the European level, which would render it illegal in all products, even cosmetics.

In Italy, the Meloni government wants to pass a new law which would make any product derived from hemp flower illegal. The move is an attempt to crack down on the country’s ‘cannabis light’ industry, with hemp flower sold across the country, as well as being exported elsewhere in the EU. The move threatens the entire Italian CBD industry, and is facing pushback from a wide coalition of CBD industry groups, agricultural groups, and opposition political figures. It is the latest attempt by Italian authorities to shut down the CBD industry in the country, with multiple attempts at reclassifying CBD as a narcotic in the country having failed over the past few years.

In Germany, while the new CanG regulations significantly eased restrictions on cannabis, industrial hemp regulations were left unaddressed, creating an unclear situation for hemp and CBD operators. To eliminate legal uncertainty and support the nation’s hemp industry, authorities have now passed the ‘Commercial Hemp Liberalisation Act’ (NLG). The most significant part of this new law is the removal of the ‘intoxication clause’, which was previously applied very restrictively under the Narcotics Act to CBD flower products in particular, creating a major barrier to the sector’s growth. The removal of this clause has stopped many criminal proceedings against CBD operators and allows the legal sale of hemp flower, with a maximum THC limit of 0.3%. The new law also permits the marketability of hemp-derived products, like CBD oils and cosmetics, with a THC content not exceeding 0.3%, provided they comply with all other food and cosmetic regulations.

In the UK, the CBD industry is still strong, with CBD extract-based products available in high street retailers across the country. Hemp flower products are still illegal in the eyes of the Home Office, however when importers or sellers of these products are prosecuted, the judge’s interpretation of the law varies, with some sellers being acquitted on the grounds that such products do not constitute a ‘narcotic drug’, highlighting the ‘grey’ legal area which hemp flower products occupy. The UK’s parallel novel foods process for CBD products has seen progress in late 2024, with a new roadmap announced by the regulator for the first approvals to be given to products in Spring 2025, after an eight-week consultation process.