The cannabis social club (CSC) landscape in Germany continues to evolve, with applications and licenses increasing steadily throughout September, albeit at a slower pace than in previous months.
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As of the latest data, 14 licenses have been granted across four federal states, while applications have risen from 226 in August to 303 in the last full week of September. However, this 34% growth represents a significant slowdown from the 237% spike seen between July and August.
Several regions experienced notable growth in applications. North Rhine-Westphalia saw a sharp rise, going from five applications in July to 69 by September. Baden-Württemberg saw a steady increase of 33 applications, while Hesse experienced substantial growth, starting with two applications in July and reaching 17 by September.
However, there have also been some setbacks. Lower Saxony, which has led the pack in issuing permits, recorded eight application rejections, marking the first known rejections. Schleswig-Holstein, with only 11 applications, also reported its first rejection.
As new licenses are issued, three new regions have joined Lower Saxony in granting permits. Berlin’s State Office for Health and Social Affairs (LAGeSo) issued its first license to Green Leaf Society e.V., which allows its members to grow and access up to 50 grams of cannabis per month for personal use. Similarly, Mecklenburg-Western Pomerania’s State Office for Agriculture, Food Safety, and Fisheries issued its first license to soChill Green Cannabis Club Greifswald e.V. Rhineland-Palatinate also issued its first license, though details about the recipient are still unconfirmed.
Despite the progress, there are ongoing issues with inconsistent regulations across states and confusion over how to interpret the law. One significant issue is securing property, as cannabis clubs must be situated at least 200 meters away from schools and youth facilities. Some applicants face repeated landlord rejections, particularly in more conservative areas like Saxony, due to the stigmatization surrounding cannabis, causing delays in the application process and leading to a loss of club members.
The regional differences in licensing approaches also create challenges. For example, Hamburg has engaged proactively with applicants, while southern states like Baden-Württemberg have stricter guidelines in place. This north-south divide, combined with the vague language in the KCanG law, has led to confusion for both applicants and authorities. Some officials, unfamiliar with processing cannabis applications, are requesting more information than legally required, such as financial or organizational plans, further complicating the process.
These issues, along with the commercial potential and operational procedures of cannabis cultivation associations, are set to be explored in more detail at the Business of Cannabis: Berlin Leadership Summit on October 23, 2024. The continued growth of the CSC movement, despite these challenges, indicates strong interest in the cannabis industry across Germany, with further developments expected as licensing processes are refined.
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