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March 2023 Is Set To Be A Historic Month For European Cannabis

Written by Johnny Green on February 27, 2023. Posted in Archives, Business, Entertainment, Policy, Science, Trending News.

The next 32 days on the European continent could prove to be one of the most historic stretches of time for cannabis public policy and the continent’s emerging legal cannabis industry. Starting tomorrow, Malta’s government will begin accepting applications for non-profit cannabis clubs.

It’s a major milestone not just for Malta, which is the only country in Europe to pass a national adult-use legalization measure, but it’s also a major milestone for the greater European industry being that Malta is the first nation in Europe to set up this kind of national adult-use licensing system. It will be very interesting to see how many applications Malta receives next month.

Malta is not the only nation set to experience a historic March 2023. As every global cannabis observer already knows, lawmakers in Germany have worked very hard to make good on their coalition agreement component relating to legalizing cannabis for adult use and implementing a regulated adult-use industry.

Germany’s Health Minister Karl Lauterbach made a formal presentation of a legalization plan back in October 2022 and has since lobbied the European Union for its permission to proceed with an official introduction of a legalization measure.

What some observers seem to have overlooked, or perhaps forgotten about, is that roughly a month ago Minister Lauterbach reportedly confirmed a timetable for a formal introduction of a legalization measure and indicated at the time that he had ‘no reason to doubt’ that a legalization measure would be introduced ‘in the first quarter of this year.’

With February drawing to a close that puts the German adult-use legalization bullseye squarely on the month of March. Whether or not Minister Lauterbach’s reported timeline proves to be accurate or not is something that time will have to determine, although, there have been no meaningful setbacks reported from what I can tell as of the posting of this article.

Additionally, cannabis enthusiasts, entrepreneurs, investors, policymakers, and industry service providers are set to flock to Barcelona, Spain in March as part of the world’s largest super-event collaboration. The International Cannabis Business Conference has once again partnered with Spannabis, Europe’s top cannabis expo, to form another super-event that is a must-attend for anyone that is serious about succeeding in the emerging cannabis industry.

The International Cannabis Business Conference will host Spain’s largest cannabis B2B event on March 9th at the L’Auditori de Cornellà, with the after-party being held at the Hotel Arts (Ritz-Carleton) Barcelona. Spannabis will follow on March 10-12th at Fira de Cornellà. The super-event is the first large cannabis conference collaboration of the year. Whenever thousands of cannabis supporters get together and network good things happen, and that will surely be the case in Barcelona next month.

Cannabis policy and industry in Europe are both at pivotal points, and being that a legal industry cannot come into existence without reform occurring first, the two are directly tied to each other. If Germany does witness the formal introduction of an adult-use legalization measure next month, it will likely set off a wave of similar political activity in other parts of Europe and that will be good news for the continent’s emerging industry.

The same goes for Malta’s cannabis club application rollout. If Malta can successfully gather, review, and approve non-profit cannabis club applications, it will have set up a bureaucratic blueprint for other nations to copy. It’s nuanced but very significant.

We will all have to wait and see what happens for cannabis in Europe in March while doing our best to temper our excitement and expectations.

Germany, malta, Spain

Malta Home Affairs Ministry Is Reportedly ‘In Talks With A Main Bank’

Written by Johnny Green on February 24, 2023. Posted in Archives, Business, Policy, Trending News.

A unique cannabis public policy and industry experiment is ramping up in Malta where non-profit adult-use cannabis clubs are expected in the near future. Starting next week, Malta’s government will begin accepting applications for non-profit adult-use cannabis clubs. The European nation became just the third country on earth to pass a national adult-use legalization measure in late 2021, with only Uruguay (2013) and Canada (2018) proceeding Malta. Non-profit cannabis clubs will serve as the backbone of Malta’s adult-use industry, and this week the nation’s Home Affairs Ministry reportedly entered into discussions with an unnamed ‘main bank’ that will be needed to help Malta’s emerging industry reach its full potential.

Access to the global banking system has proven to be difficult for certain entities in the public and private sector regarding cannabis commerce, although there are certainly examples of entities being able to successfully navigate the financial regulatory labyrinth in some instances. Still, getting consistent banking solutions pinned down is something that is a top priority for any emerging cannabis market, and Malta is no exception, so reports that there is progress on that front is encouraging.

A Somewhat Unique Model

Cannabis clubs are not a new phenomenon, so from afar, what is going on in Malta may not seem significant. After all, Uruguay and Canada both already permit cannabis clubs to operate in some fashion in certain jurisdictions. For that matter, Barcelona is home to hundreds of private cannabis clubs, albeit operating in a semi-grey area of the law. Yet, Malta is unique compared to those markets in that its entire cannabis commerce model will be based on licensed non-profit cannabis clubs. Home cultivation will be permitted, but the only way to legally purchase cannabis in Malta once clubs are implemented is via non-profit clubs.

It may seem nuanced, but as anyone that has paid attention to the ongoing cannabis banking saga will recognize this is a bit of a new wrinkle. Uruguay has experienced banking issues despite permitting non-profit cannabis clubs, but it also permits sales in pharmacies. That last component was the root of banking issues in Uruguay back in 2017. Major banks in Canada are the subject of a recent lawsuit due to alleged discrimination against cannabis companies. It will be interesting to see if Malta ever experiences the same hurdles given the fact that its legalization model is much more limited compared to Uruguay and Canada.

Helping Create The Blueprint

For many years I blogged about cannabis reform efforts in the United States, and many things have proven to be similar as I have transitioned to blogging about international reform efforts. Similar to different states in the U.S., within the international community there are clearly categories of nations when it comes to cannabis policy. Some are pro-cannabis, some are anti-cannabis, and some are seemingly indifferent. The pro-cannabis nations are doing what they can to get around international hurdles, and anti-cannabis nations are doing everything they can to cling to treaty provisions in an attempt to maintain the prohibition status quo wherever they can.

Due to international treaties, cannabis legalization cannot proceed unhindered in any nation. Even Uruguay and Canada had to consider international agreements and partnerships prior to legalizing, and even when they did proceed, they did so in defiance by some measures. In the Eastern Hemisphere things are proceeding differently. Leaders in nations like Malta and Germany are seeming to be getting more and more creative as they try to figure out a blueprint of sorts for what legalization may look like without violating agreements that extend beyond their borders. With that in mind, the banking discussions in Malta may not seem like a big deal, but if it can add to the previously mentioned metaphorical legalization blueprint in a meaningful way, it will indeed prove to be a very big deal.

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Will Malta’s Cannabis Club Model Be Adopted By Germany And Spain?

Written by Johnny Green on February 9, 2023. Posted in Archives, Business, Policy, Trending News.

In many ways the European continent seems like it is on the cusp of hitting warp speed for cannabis policy reform, and if so, a potential rapid spread of the legal cannabis industry could be on the horizon. The most noteworthy evidence of this can be found in Germany right now, where an adult-use legalization measure is expected to be introduced in the first quarter of this year. Once the measure is formally introduced in Germany it will likely be followed by similar measures being introduced in other European countries. Malta may not have as much political clout as Germany, however, its approach to cannabis clubs and adult-use regulation will also likely have a large butterfly effect on its continental peers whether people realize it or not.

In late 2021 lawmakers in Malta passed an adult-use cannabis legalization measure. It was the first time since the start of cannabis prohibition that a European country passed a national cannabis legalization measure that did not involve any limits on THC content for consumers over 21 years old. Only two other countries on the planet passed such measures prior to Malta doing so (Uruguay and Canada). Malta’s legalization model involves allowing people of legal age (18 or older) to possess up to seven grams of cannabis and for adult households to cultivate up to four plants per residence. Consumers that do not cultivate their own cannabis will eventually be able to make purchases at non-profit cannabis clubs, and the proposed approach to regulating cannabis commerce in Malta via non-profit clubs could become a blueprint for other European countries to copy in the near future.

The Malta Model

Starting on February 28, 2023, aspiring non-profit cannabis club operators can apply for a license through Malta’s Authority for the Responsible Use of Cannabis (ARUC). Regulations for such clubs include (but are not limited to):

A maximum of 500 club members
Cannot be located within 250 meters of a school or ‘youth center’
No advertising
Cannot use the word ‘cannabis’ in the club’s name, or anything that would ‘incite use’
At least two club founders with no prior convictions of money laundering
Clubs must have a legal representative
Club administrators have to be residents for at least 5 years
All cannabis has to be cultivated by the club itself (out of public view)
Registration fee of €1,000
License fee starting at €8,750
Initial licenses valid for 1 year, with 3 year renewals
Labeling requirements
Ongoing government auditing
Product testing
THC percentage caps for consumers 18-20 years old
Consumers can only have a membership at 1 club at a time
Revenue dispersal requirements

It still appears to be up in the air as to whether people will be able to consume cannabis on-site at the cannabis clubs, and while the current rules are fairly extensive, it’s always possible that they could evolve over time. After all, these new rules and regulations in Malta are brand new to the world by many measures, and there will no doubt be a need to tweak things as time goes on.

Will Germany And Spain Adopt Malta’s Approach?

Now that Malta is rolling out its legal cannabis commerce model, two countries that are of particular interest to me from a cannabis public policy standpoint are Germany and Spain, as they seem to be the European countries that will benefit the most from a ‘Malta butterfly effect.’ Make no mistake – Germany is on its own path towards legalization, and regardless of what is going on in Malta, the process for German legalization will continue. However, whether Germany will eventually have cannabis clubs and/or allow social use is unclear at this time, and it’s feasible that a successful rollout of clubs in Malta could encourage Germany to incorporate aspects of Malta’s legalization model as it pertains to those types of entities.

Spain, in my opinion, is much more likely to experience a cannabis public policy butterfly effect from what is going on in Malta compared to Germany. Spain is already home to numerous private cannabis clubs, albeit unregulated ones, and so it’s much more of an apples-to-apples comparison. Many, if not all, of the non-profit club provisions that are being adopted in Malta could also be adopted in Spain if lawmakers were willing to make it happen. Malta has quite literally provided Spain with a blueprint of how to regulate non-profit cannabis clubs. Of course, enough time will need to go by in order to know that the current regulations are sensible, but Malta’s approach is already better than Spain’s in that a formalized approach actually exists and is being implemented.

Malta may not have a huge economy or enormous population, yet, its approach to regulating cannabis commerce is historic in many ways, and the significance of the approach cannot be overstated. Being the first country on a continent to regulate adult-use cannabis commerce at a national level is not easy. After all, there is no guidebook for such an endeavor other than what has gone on in Uruguay and Canada, and even strategies from those countries aren’t always applicable on the other side of the Atlantic Ocean. A successful launch in Malta would be a win not just for consumers within Malta’s borders, but also potentially for consumers across the European continent.

Germany, malta, Spain

cannabis joint lounge social use space consumption

Could Malta’s Cannabis Club Licensing Model Benefit Spain?

Written by Johnny Green on December 12, 2022. Posted in Archives, Business, Entertainment, Policy, Trending News.

As I often point out, Spain is home to one of the most amazing cannabis communities on earth, particularly Barcelona where we co-host the world’s largest cannabis superconference every year with Spannabis. Whereas cannabis communities are just starting to take off in many parts of the world, Spain’s community was thriving decades ago, and that continues to this day.

The backbone of Spain’s cannabis community is, of course, cannabis clubs. It is no secret that hundreds of cannabis clubs exist throughout Spain, with Barcelona being a particularly popular destination for clubgoers. Clubs are a great way to obtain cannabis and to socialize with like-minded people.

Cannabis clubs are unregulated in Spain, which can be confusing for many people being that there are so many of them. Cannabis clubs are tolerated to a large degree in Spain, however, that doesn’t mean that they are legal. It creates a catch-22 of sorts for cannabis reform advocates, in that the same thing that makes Spain so special (access to lots of clubs) is also the same thing that makes it hard to move the needle.

I have worked as a cannabis activist for a long time and so much of the enthusiasm behind cannabis reform efforts I helped with was predicated on boosting personal freedom. In Spain there seems to be an understandable enthusiasm gap, in that people already experience a great amount of freedom. That, combined with world class cannabis, makes it difficult to get people fired up.

With that being said, cannabis reform still needs to occur in Spain so that selective enforcement is eliminated and that the domestic industry can reach its full potential. Cannabis club operators should be able to get licenses like any other business, albeit with industry specific regulations. Eliminating the uncertainty by regulating clubs would help the situation in many ways.

So what is going to move the needle in Spain? One thing that may yield some movement is legalization elsewhere, such as in Germany. However, Germany’s legalization model doesn’t appear to include clubs, at least not at this time, so it may not be enough of an ‘apples to apples’ situation to raise enough eyebrows in political circles in Spain.

One thing that I am very interested to see unfold, and whether it has any policy butterfly effect on Spain, is the rise of cannabis clubs in Malta. Malta passed a national adult-use legalization measure late last year, making it the first country in Europe to do so.

The measure was largely built on the premise of consumers obtaining their cannabis from non-profit cannabis clubs. The only other way for adults to obtain cannabis is to cultivate it themselves or be gifted it. As we previously reported, Malta is expected to start accepting applications for non-profit cannabis clubs in February, which is obviously not too far away.

It is unclear right now how long it will be after applications are initially collected before the first regulated club is opened, however, things do seem to be moving along. Once Malta officially rolls out its cannabis club licenses, and sets up all of the processes and regulations pertaining to it, it will have created a blueprint for other countries to mimic, including and especially Spain.

I don’t necessarily expect lawmakers in Spain to see it as Malta potentially stealing cannabis tourism away from Spain, but rather, that they will hopefully see that regulating clubs can be done and that Spain could potentially do it in a more economically stimulating way. Only time will tell if that proves to be the case or not.

malta, Spain

Malta To Start Accepting Cannabis Club Applications By February

Written by Johnny Green on December 1, 2022. Posted in Archives, Business, Policy, Trending News.

Malta made continental history late in 2021 when lawmakers passed Europe’s first nationwide adult-use legalization measure. Prior to legalization passing in Malta, the only two other countries that had previously passed national legalization measures were Uruguay in 2013 and Canada in 2018. However, unlike its predecessors, Malta’s legalization model does not provide for sales through pharmacies, storefronts, and for-profit delivery services. Rather, Malta’s legalization model will be built on non-profit cannabis clubs, applications for which people can start submitting as early as February 2023.

Despite legalization’s passage in Malta late last year, there are still no legal means by which to purchase legal adult-use cannabis products. Whereas consumers have a buffet of options from which to make cannabis purchases in Canada, and to a lesser extent Uruguay (residents only), consumers in Malta have continued to wait until the regulatory framework is set up for non-profit cannabis clubs. Thankfully, there appears to be some progress on that front.

Accepting Applications In 2023

The non-profit cannabis club model is not a new concept. Barcelona, where we co-host the world’s largest cannabis super-conference every year along with Spannabis, is home to numerous private cannabis clubs where people can acquire cannabis as well as consume it in a social setting. Uruguay is also home to hundreds of private cannabis clubs, although Uruguay has implemented a regulated system for cannabis clubs compared to Spain where clubs still operate in somewhat of a grey area of the law.

In Malta there will only be two legal sources for adult-use cannabis. One of them is home cultivation. Adult households in Malta can cultivate up to four plants, per the law that was passed late last year. The other source for adult-use cannabis will, of course, be cannabis clubs. However, clubs cannot exist without first having a license, and generally speaking a license cannot be obtained until there is an application and approval process set up. That last part is reportedly finally happening in February 2023 in Malta.

“The Authority for the Responsible Use of Cannabis will be in a position to start accepting applications for cannabis club licenses by next February, according to Parliamentary Secretary Rebecca Buttigieg.” stated Malta Today in its domestic coverage. Malta’s Authority for the Responsible Use of Cannabis will oversee the non-profit sector, including the cannabis club application process. Leonid McKay is currently the executive chair of the authority.

What About The European Union?

Currently, an adult-use legalization measure is looming in Germany, with the nation’s Health Minister Karl Lauterbach currently lobbying the European Union to gain approval prior to formally introducing the measure so that lawmakers in Germany can officially consider it. While some lawmakers in Germany have called for the measure to be introduced immediately, the Health Minister appears to still be seeking EU approval first, at least for the time being.

An obvious question that international cannabis observers are asking on social media and beyond is why is Malta legalizing without so much European Union involvement compared to Germany? It’s a straightforward question that yields some fairly complicated answers. The less complicated answer is that Malta’s legalization model is far more limited than what is being proposed in Germany. Lawmakers in Germany are proposing a nationwide adult-use market where legal purchases will be made at storefronts, similar to what is going on in Canada but on a much larger scale. Malta will have non-profit clubs where people can acquire cannabis, but only if they are members and membership will be limited in many ways I’d assume.

The more complex answer is that Germany’s Health Minister is likely pursuing a strategy that will save legal and political headaches down the road. If the European Union gives its blessing to Germany’s plan, then it largely thwarts potential legal challenges from other EU member nations and mitigates some of the probability of German legalization becoming a political punching bag for cannabis prohibitionists. EU approval would be a final answer in many ways, and while challenges would likely still be pursued, it would be nearly guaranteed that legalization would overcome any challenges if EU approval was granted prior to a legalization measure’s introduction. With that being said, the EU presumably realizes that the decision on Germany will set a precedent, and a big one at that, so it’s not a decision that will be made hastily. The longer it takes for the decision to be rendered, the louder the calls will become within Germany’s borders for lawmakers to hit the gas pedal. In the meantime, the framework for Malta’s limited legalization model will continue to develop.

Europe, Germany, malta

Malta Has Not Issued Any Licenses To Cannabis Associations And Clubs

Written by Marguerite Arnold on September 5, 2022. Posted in Archives, Business, Policy.

Eight months after the new rules on cannabis use came into effect, the government has failed to issue a single license allowing such establishments to begin operating

Despite leading the way on cannabis legalization in Europe, the Maltese government has yet to issue a single license allowing non-profit cannabis associations and clubs to operate. The government has also failed to issue any regulations or guidelines for the operation of the same.

The government entity responsible for the same, the Authority on the Responsible Use of Cannabis (ARUC), has said that the process of issuing such licenses was “delicate” and “could not be done overnight.”

Where Is the Timeline?

According to Authority chairperson Mariella Dimech, a baseline study on the general population has been conducted. This study will serve as a foundation for the ARUC to create operating guidelines and regulations for such establishments.

That said, there are a few rules which are now in force that will undoubtedly shape the conversation.

Currently adults are allowed to carry up to 7g of cannabis when they venture outside of their houses – although they may not smoke in public. Residents of the island are also able to cultivate up to four plants.

Beyond this, the government has already established that such associations will be limited to 500 members each, must be located at least 250 meters away from schools or youth centres, and cannot advertise their services – including having signs that include either the word “cannabis” or pictures of the plant itself.

What Does This Mean for Other EU countries on the Cusp?

Nobody ever said that legalization was easy. On a federal level, it is even more challenging. See Canada, for starters. Yet in Europe, this conversation is even more complicated by the necessity of remaining in compliance with both regional and international laws. This is one of the reasons that Malta, along with Luxembourg and Germany, have begun multilateral discussions on how to legalize the recreational industry.

That said, it is clear that of the three, Malta has paved the way – even ahead of Luxembourg which promised a recreational market by 2023 (five years ago).

For this reason, it is unlikely that the creation of an entire non-profit industry will happen at a fast pace. It is also very likely that Malta is in discussion with the other two countries in the coalition on how to proceed domestically, particularly as what happens here may well be used as a blueprint for reform in at least these other two countries.

malta

Which Country Has ‘The Best’ Cannabis Legalization Model?

Written by Johnny Green on April 23, 2022. Posted in Archives, Policy.

Cannabis prohibition, thankfully, has not always existed. For thousands of years, humans used the cannabis plant for various purposes, and it was only in the 1900s that cannabis prohibition first became a widespread public policy around the globe.

As I have said many times and will say until the day that I die, cannabis prohibition is one of the most harmful public policies in the history of humans. Countless people have had their lives needlessly ruined because of the cannabis plant, despite the fact that cannabis is safer than many of the products people have in their homes.

Fortunately, the walls of cannabis prohibition are slowly but surely crumbling, and now there are multiple countries within the global community that have legalized cannabis for adult use. Lawmakers in Uruguay, Canada, and Malta have all passed adult-use legalization measures, and all three countries have different legalization models.

Buying And Cultivating

All three countries that have legalized cannabis at the national level currently have the same legal age, 18 years old, and all three countries permit adults of legal age to cultivate cannabis at home, although Canada has seen some local bans that are working their way through various legal challenges.

The real difference between Uruguay, Canada, and Malta’s legalization models can be found in how people legally purchase cannabis for adult use. Uruguay, the first country to ever legalize cannabis for adult use, limits purchases to clubs and pharmacies, and only citizens and permanent residents can make purchases (although that is changing at some point).

Malta is still setting up rules and regulations after becoming the first country in Europe to legalize cannabis for adult use late last year. When sales do begin in Malta, they will only occur via private clubs – no dispensaries. From a purely purchasing standpoint, Canada has the best legalization model in that anyone from anywhere can make a purchase as long as they are of legal age, and those purchases can be made through the mail, via storefronts, and virtually any other way that people can buy cannabis.

More Legalization On The Horizon

Uruguay was the first country to ever legalize cannabis at a national level. Canada was the first G-7 country to legalize cannabis for adult use. Malta was the first country in Europe to pass an adult-use legalization measure. All three of those countries have a claim to being the first to legalize cannabis in some manner, however, none of them will be the last.

Multiple countries (Denmark, Switzerland, the Netherlands) are launching or expanding adult-use legalization pilot programs that create localized legalization. Multiple other countries (Mexico, Italy, South Africa) have had their top courts render decisions against cannabis prohibition policies and lawmakers there are working to fully implement legalization.

Germany, which is home to one of the largest economies on planet earth, is trending closer to legalization every month. The largest prohibition domino, the United States, is witnessing the continued spread of legalization at the state level with every passing year either via the election process or the legislative process. With that in mind, more legalization models are on the horizon and while all of them are likely to incorporate some policy components that are already implemented in current legalized nations, there will be new policy components introduced as well as more countries get on the right side of history, with some new policies being more nuanced than others.

Trying to determine what is ‘the best’ is a subjective measurement, and largely in the eye of the beholder. That is true of cannabis legalization policies just as it is with virtually anything else. What is considered to be ‘the best’ cannabis policy in one region may not work at all in different regions. With that being said, every legalization model is better than locking humans in prison cells due to them being caught with cannabis.

Canada, malta, uruguay

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