How 2020 changed the cannabis industry

Regulations around the world

In the UK, a consultation period was launched on 23 October to develop a world-leading export-based cannabis sector from the Isle of Man.

The production and exportation of cannabis-derived products could be legalised on the British Island – with the first crops planted as soon as 2021 – after a vote in Parliament at the end of 2020.

Meanwhile, following the US election, the CBD industry benefited from the result as, in five different states, ballot initiatives to legalise medical and/or recreational cannabis were passed. Those in the sector described it as an ‘exciting time’, with medical cannabis beginning to go mainstream.

Reclassification in Europe and beyond

There was a major development in November, when the European Court of Justice confirmed that CBD is not a narcotic drug and has no harmful effects on human health, in a significant milestone for the industry.

The next month, the UN followed suit, voting to reclassify cannabis as a less dangerous drug and recognise its medicinal benefits. The landmark move to remove medical cannabis from a list of serious narcotics was warmly welcomed by the sector.

Furthermore, in November, a groundbreaking scheme was launched to protect UK patients from arrest and prosecution. Over one million British adults became eligible for a medical cannabis exemption card, designed by patients with the backing of senior police officials.

 

Looking to the future

In September, the Hemp Manifesto was launched, put together by experts such the British Hemp Alliance, Beyond Green and Unyte and calling in the UK Government to tap into the substance’s true potential.

The manifesto was delivered to Number 10 campaigners also spoke directly to Michael Gove – former environment secretary and self-proclaimed reformed environmentalist – about what hemp can do for the British climate.

This year also marked the unveiling of plans for the UK’s first £30m state-of the art hemp processing plant in the East Midlands. Unyte said the project will be the first of its kind in the UK, growing 5,000 acres a year, with the ability to produce 25 tonnes a day – 10 times the current market’s capacity.

Echoing this, in November, London-based investment firm Chrystal Capital Partners revealed it expected the global cannabis industry to be worth $350bn in the next 10 years, generating ‘trillions’ of dollars in shareholder value.

The firm launched the $100m Verdite Capital Fund – Europe’s largest cannabis-focused investment fund – in October, with plans to take it to $200 million through later fundraising.

 

Health research

A landmark study found that long-term exposure to CBD does not appear to have any adverse effects on health – in fact, it had clear benefits.

The study, the first of its kind to examine the toxicity and long-term effects of CBD, found that it did not demonstrate ‘any degree of acute or life-long toxicity’, instead actually extending the average lifespan and increasing activity in later life.

As we have seen, a lot can change in 12 months, and with the evidence mounting for the benefits of CBD, we’re looking forward to seeing what 2021 may hold for the cannabis industry.