Green Wave In Germany Now Includes Hemp, New Bill Promotes Industrial Production

Zinger Key Points
  • Germany proposes a bill to liberalize hemp, removing legal barriers and permitting indoor cultivation for broader economic opportunities.
  • The Industrial Hemp Liberalization Act seeks to eliminate the "abuse clause" and align regulations with EU standards.
Loading...
Loading...

The German government wants to promote industrial Hemp. The German Federal Ministry of Food and Agriculture recently published a draft bill aimed at modernizing the policies surrounding industrial hemp cultivation and handling. The proposed Industrial Hemp Liberalization Act (NLG) is set to eliminate legal uncertainties and open new avenues in the industrial hemp sector, reports InternationalCBC.

The bill seeks to abolish the controversial “abuse clause” and permit indoor cultivation of industrial hemp, supporting sustainable raw materials and climate protection initiatives. However, it strictly excludes the consumption of cannabis products for intoxication purposes.

Hemp Production In Germany

In Germany, the cultivation of industrial hemp has been growing steadily but remains a niche sector. Economic and bureaucratic challenges, coupled with significant legal uncertainties, have limited its expansion. The bill proposal argues that the measures to protect and promote hemp, which is an interesting crop in terms of sustainability, have failed.

The restrictive nature of regulations, particularly the “abuse clause” has led to economic damage and bankruptcies within the industry. Federal Agriculture Minister Cem Özdemir of the Greens party has publicly supported the modernization of hemp policies, emphasizing the need to remove unnecessary legal barriers.

"Imagine if dealers and producers of non-alcoholic beer were subjected to raids and punished because they could distill a schnapps from the remaining alcohol. In practice, such a complex extraction does not take place with industrial hemp," said Jürgen Neumeyer, managing director of BvCW. The association argues that the existing clause is senseless and its removal is crucial for the industry’s growth.

Read Also: How South Dakota Became The US’s Top Hemp Producer In Just Three Years

Hemp In The U.S.

Globally, industrial hemp production has seen varying levels of acceptance and growth. In the United States, the 2018 Farm Bill legalized the cultivation of hemp and removed it from the list of controlled substances, leading to a significant increase in production. This has opened up opportunities for a wide range of hemp-derived products, including CBD, textiles, and biofuels. However, the industry still faces challenges related to regulatory inconsistencies and market saturation.

States like Colorado and Kentucky became leaders in hemp production in 2019, leveraging supportive local policies to boost their industries. The focus on sustainability and innovation continues to drive the sector forward, with ongoing research into new uses for hemp, from construction materials to environmentally friendly plastics.

Now Read:

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisGovernmentNewsRegulationsMarketsGermany CannabisGermany HempIndustrial Hemp
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.


Loading...