Industry criticizes cannabis legalization draft

THC limits too low and age requirements difficult to implement. In view of the leaked draft key points paper, many start-ups are calling for significant changes.

It is, to put it mildly, all a bit complicated in terms of cannabis legalization in Germany. When will it come, what could the legal framework look like and how could it all be implemented in the end? A key points paper leaked last week from the Ministry of Health, first reported on by the Redaktionsnetzwerk Deutschland reported, is supposed to answer all these questions. Although many founders are pleased that this brings cannabis legalization ever closer, they see a clear need for improvement in some areas, as a small survey by Startbase shows.

"The good news is that legalization is getting closer and the German government is on track to keep the promise made in the coalition agreement," Lars Möhring, CEO of Enua Pharma GmbH, tells Startbase. Since it is so far only a key point paper, which is also not yet final, he wants to rank the individual points, just like many other founders, only cautiously. "The final legislative proposal should ensure widespread, safe and sustainable availability of cannabis," he demands. It is therefore absolutely right, he says, that the Ministry of Health no longer wants to classify cannabis as a narcotic and also wants to enable online trade.

However, many industry representatives are particularly critical of the proposed THC content. According to the current draft, cannabis in Germany may only contain 15 percent of this active ingredient. When sold to people between the ages of 18 and 21, it should only be a maximum of ten percent.

15 percent would be mostly below what has been contained in medical cannabis so far, says Florian Wesemann of the start-up Nowomed, which focuses on alternative medicine with cannabinoids. "This means that therapy with high THC content, for example with preparations with up to 25 percent, would remain in medical hands," he explains. This would not effectively curb the black market.

Constantin von der Groeben, co-founder and CEO of Demacan, a producer of medical cannabis, also disagrees with the THC cap. He considers it "simply impracticable," he says. Lars Müller, founder of Synbiotic, also thinks the probably planned THC upper limit is too low. The black market would otherwise focus on more heavily dosed cannabis, he fears.

Müller takes a positive view of the fact that hemp will also be produced in Germany in the future. "We hope that in the long term it will come down to a German purity law for cannabis, regardless of whether the product now comes from domestic production or may also be imported from abroad at some point."

Lars Möhring, on the other hand, warns against recognizing only cannabis grown in Germany. "At the moment, Germany only grows up to four tons for medical purposes. This does not even come close to covering the annual demand for the approximately 300,000 patients," he says. The CEO expects that legalization will result in around five million additional users purchasing cannabis from licensed specialist stores.

Also controversial in the industry is the age limit for THC levels, which the Ministry of Health apparently wants to introduce. Especially for young adults under the age of 25, the negative effects on brain development from cannabis use should be considered, says Florian Wesemann of Nowomed. However, he considers a separate THC limit of ten percent for 18- to 21-year-olds to be difficult to implement and verify. "Should this regulation come about in this way, it holds a high potential for abuse in my view," he says. Other founders also think it is too complicated.

But aside from all the details, the first thing to clarify is whether the federal government's legalization plans are even legally possible. "Germany interprets cannabis legalization as compliant with international and European law," says Niklas Kouparanis, co-founder and CEO of Bloomwell Group. "Whether a draft law is even initiated stands or falls on whether the European Commission shares this view." The key points paper, he said, still needs to be tweaked in its final version.