Legal & Regulatory

After Cannabis, Germany to Revive Its Hemp Industry

The German government is considering abolishing the "intoxication clause" that restricts industrial hemp production, which could significantly boost the hemp industry by increasing the allowable THC limit for hemp cultivation. Despite the decriminalization of cannabis, the Federal Court of Justice has decided to maintain the existing limit for what constitutes a "significant quantity" of THC.

The German Federal Minister for Food and Agriculture has hinted that the controversial “intoxication clause” could soon be abolished.

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Abolishing the Intoxication Clause On Hemp

At a parliamentary meeting organized earlier this week by the German Cannabis Business Association (BvCW), Cem Özdemir indicated that efforts were underway to remove this clause, a long-awaited and welcome news for the country’s hemp industry.

This “incomprehensible clause,” which was not removed in the recent cannabis law despite persistent calls from the entire sector, means that farmers can only produce industrial hemp with a THC content of 0.3% or less if abuse for intoxication purposes is excluded.

Indeed, fears that hemp could be used for recreational purposes have led to its strict regulation, even though Germany now allows the home cultivation of high-THC cannabis.

Jürgen Neumeyer, Managing Director of BvCW, stated in a recent press release: “Imagine if dealers and producers of non-alcoholic beer were raided and punished because they can distill schnapps from residual alcohol.”

“In practice, such complex extraction does not occur with industrial hemp either. This senseless intoxication clause has caused increasing economic damage and bankruptcies in recent years. Its abolition is urgent, and we welcome it!”

What Happened?

At the annual parliamentary event, which welcomed industry leaders, policymakers, and regulators, Mr. Özdemir stated that the abolition of the clause was “long overdue.”

In his speech, he praised hemp for its long history of use worldwide and its potential as a sustainable and climate-friendly crop.

He expressed his intention to remove the intoxication clause and raise the THC limit for industrial hemp cultivation, another long-standing demand of the industry.

According to Özdemir, the current reluctance to address the issue is “almost like avoiding bakeries or the entire bakery sector simply because they offer poppy seed cakes.”

However, due to the persistent reluctance of those who “recoil in horror” at the word cannabis, he stated that plans to remove administrative barriers to hemp production would be implemented step by step.

This is the first time a minister has confirmed his intention to tackle the issue, and this decision has been hailed as a “big step towards better utilization” of hemp in the future.

Since it became clear that the clause would not be removed from the cannabis bill, major stakeholders have repeatedly emphasized that it is an unnecessary and absurd obstacle preventing a potentially huge industry from thriving.

Industry Leaders’ Perspectives On Hemp

At the International Cannabis Business Conference (ICBC) in Berlin last year, Daniel Kruse, industry veteran and president of the EIHA, stated: “I would simply abolish this clause. All stakeholders will advocate for its abolition.”

“The debate on the misuse of hemp must be closed. Hemp has enormous potential if the clause is removed. Industrial hemp would generate more sales than medical and recreational drugs combined in Germany.”

Kai-Friedrich Niermann, a cannabis lawyer and industry expert, told Business of Cannabis in November 2023 that maintaining this clause effectively meant that “the German market for consumable industrial hemp products has thus been given the death blow.”

“The legal situation of CBD and industrial hemp products should continue to apply in the new law, according to the legislator’s intent. This means that misuse for intoxication purposes must continue to be excluded for industrial hemp products.”

“According to German law enforcement authorities, including the Federal Court of Justice, this misuse is not excluded for CBD flowers and hemp leaf tea. These products risk being permanently excluded from the German market.”

THC Limit of 7.5 g

Another oddity of the new German cannabis regulation, which seems to directly contradict its general objectives, is that the Federal Court of Justice (BGH) decided in April that the legal determination of a “significant quantity” of cannabis would remain unchanged.

Since April 1, 2024, Section 3 of the cannabis law stipulates that possession in public of up to 25 g of cannabis, or 50 g at home, will no longer result in criminal penalties.

Despite this widespread decriminalization, the BGH decided that the determination of a “small” amount of cannabis, which is 30 years old, would remain unchanged, as it did not assume a “new risk assessment” justifying an increase in the limit, to the great disappointment of many lawmakers.

Their decision was based on the assumption that the average amount of THC to intoxicate a person by inhalation was 15 mg, and thus 7.5 g of THC would continue to result in a penalty.

(Featured image by Washarapol D BinYo Jundang via Pexels)

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First published in Newsweed, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Helene Lindbergh

Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.

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