In a time when climate change is at the forefront of legislative discussions and governments around the world are scrambling to mitigate its effects, Maryland stands out with ambitious goals set forth by the administration of Governor Wes Moore. Amid these lofty aspirations, a crucial sector seems to have been left out of the equation– the cannabis industry, particularly hemp. In this article we will review the Moore Administration's ambitious goals and missed opportunities. Before we dive-in let's develop an understanding of the different approaches to cannabis legalization.
The 3 Approaches of Cannabis Legalization
In 1996, California became the first state to legalize medical cannabis, sparking a trend that spread to a majority of states by 2016. While Colorado and Washington became the first two states to legalize the recreational use of cannabis in 2012, simultaneous efforts were underway to legalize hemp production in the US. Finally, the 2018 Farm Bill legalized low levels of Delta-9 THC (less than 0.3% Delta-9 THC) hemp and hemp-derived products such as cannabidiol (CBD) at the federal level. The bill also fully removed or "de-scheduled" low Delta-9 THC cannabis products from the Controlled Substances Act, where they had been listed as Schedule I drugs since the CSA's inception in 1970. These different approaches to cannabis legalization can be designated as:
Medical
Adult-Use/Recreational
Agricultural
The 2018 Farm Bill redefined hemp or the cannabis plant as an agricultural commodity, marking a significant shift in the approach to cannabis legalization. Unlike the medical and adult-use/recreational approaches, which have faced challenges such as burdensome regulations, high taxation, and restrictions under Section 280E, the agricultural approach presents a more promising avenue for diverse business participation, innovation, sustainability and economic growth.
This approach emphasizes the cultivation of cannabis (hemp) for industrial and therapeutic purposes, leveraging its versatile applications beyond recreational use. By legalizing hemp cultivation on a federal level, the Farm Bill opened doors for farmers and entrepreneurs to explore the plant's various potentials, including the production of hemp-derived cannabinoids.
Through the agricultural approach, we've seen advancements in interstate commerce and the disproval of fears propagated by prohibitionists regarding the consequences of cannabis legalization. This method fosters a more inclusive and free-market environment, allowing for common-sense regulations that support both industrial and therapeutic uses of cannabis.
Embracing the agricultural approach to cannabis legalization not only promotes economic opportunities but also unlocks the full potential of the plant, benefiting industries ranging from textiles to medicine. All while paving the way for a more sustainable, innovative, and equitable cannabis industry.
The Moore Administration's Ambitious Goals
In the realm of environmental responsibility and economic development, the state of Maryland under the leadership of Governor Wes Moore has set forth ambitious goals. These include a commitment to decrease greenhouse gas emissions by 60% by 2031, achieve 100% clean energy by 2035, and reach net-zero emissions by 2045.
Recent setbacks, such as the termination of an agreement with Ørsted for offshore wind development, underscore the challenges facing Maryland's clean energy transition. Market conditions, including inflation and supply chain constraints, pose obstacles to realizing clean energy goals.
Secretary of the Environment, Serena McIlwain, emphasized the administration's dedication to combating the climate crisis while fostering economic growth. She stated, “This Administration has not only accepted that responsibility, but we are holding nothing back in our effort to fight the climate crisis while leaving no one behind.”
It's a noble mission, one that promises not only environmental benefits but also economic prosperity. McIlwain emphasized that this plan "will also position our state to win the decade by producing jobs, innovation, and healthier communities," but she also acknowledged that "it will take more investment and commitment from all of us to reach the finish line."
"we are holding nothing back in our effort to fight the climate crisis while leaving no one behind.”
However, amidst these aspirations, questions arise regarding Maryland's cannabis industry and its alignment with the state's environmental and economic objectives. During the 2023 legislative session, the hemp industry, with its promise of green jobs and methods to sequester carbon, was left behind. This oversight raises concerns about whether Maryland is investing in the right sector of the cannabis industry to meet its ambitious targets.
Putting Capital In A Greenhouse Gas Emitter
A critical examination of the cannabis industry's environmental impact sheds light on this dilemma. According to a Colorado Cannabis Industry Environmental Impact report, a significant portion of cannabis facility electricity consumption is attributed to HVAC and dehumidification systems. Additionally, a study titled "The greenhouse gas emissions of indoor cannabis production in the United States" revealed alarming figures regarding the carbon footprint of indoor cannabis cultivation. The study found that indoor production emits substantial greenhouse gases, largely due to energy-intensive environmental controls and grow lights. Shockingly, the emissions associated with growing just one ounce of cannabis indoors are comparable to burning 7 to 16 gallons of gasoline.
In Massachusetts, cannabis production accounts for 10% of the state's indoor energy use; in Colorado, one of the first states to legalize, it now emits as much carbon as mining, according to a letter from two members of Congress to the Energy Department, who wrote with concerns about the "industry's rapidly growing demands on our country's energy systems."
Switching to outdoor production could reduce greenhouse gas emissions by a staggering 96 percent
In contrast, outdoor cultivation and regenerative methods, as demonstrated in the hemp industry, offer a more sustainable alternative. The same study estimated that switching to outdoor production could reduce greenhouse gas emissions by a staggering 96 percent. Moreover, hemp cultivation has the added benefit of carbon sequestration in the soil, contributing to efforts to combat climate change.
Research conducted by Darshil Shah from Cambridge University reveals the remarkable potential of hemp in combating climate change. Shah, a senior researcher at the Centre for Natural Material Innovation at Cambridge, highlights hemp's ability to sequester atmospheric carbon at twice the rate of forests. Hemp cultivation can absorb between 8 to 15 tonnes of CO2 per hectare, surpassing the CO2 capture rates of traditional forests, which typically range from 2 to 6 tonnes per hectare per year. This underscores hemp's significance as a carbon-negative biomaterial, offering valuable opportunities for sustainable food, medicine and alternative material initiatives.
"Hemp is a terrific crop that enables us to tackle a multitude of human-generated environmental problems – air, soil and water for example – whilst being productive in offering us food, medicine and materials,"- Darshil Shah
In the wake of the 2023 Cannabis Reform Act (CRA), the MD General Assembly established the Cannabis Business Assistance Fund (CBAF) under the purview of the Maryland Department of Commerce. This fund aims to offer grants and loans geared towards enhancing the capacity of minority and women business owners/entrepreneurs to engage in Maryland's adult-use cannabis industry. Notably, the CRA also ushered in a cannabinoid monopoly in MD, effectively excluding hemp industry participation from the market. Maryland's medical cannabis industry, with approximately 10% minority participation, was mired in litigation and investigations. Despite the MD hemp industry boasting approximately 30% minority participation, along with significant investments and a commitment to more sustainable practices, it found itself sidelined by these regulatory changes.
Agriculture Presents A Pathway Forward
Reflecting on the approaches to cannabis legalization, it becomes evident that the "agricultural approach" holds promise for realizing Maryland's environmental and economic goals. While the medical and adult-use sectors have faced challenges such as overregulation and taxation, the agricultural approach champions diversity, innovation, and disproves fear-based narratives surrounding legalization.
The agricultural approach, exemplified by federally legal hemp-derived cannabinoids, offers opportunities for broader business participation, interstate commerce, and sensible regulations. By embracing this approach, Maryland can leverage the potential of the cannabis plant for both industrial and therapeutic purposes while advancing its environmental and economic objectives.
In conclusion, as Maryland navigates its path towards a sustainable future, it must reassess its priorities within the cannabis industry. Embracing the agricultural approach not only aligns with the state's environmental and economic objectives but also paves the way for inclusive growth and innovation. It is time for Maryland to recognize the potential of regenerative cannabis production methods and invest in a greener, more equitable future for all.
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