Cannabis Legalization Plan in Israel

Israelis have been eagerly awaiting the legalization of cannabis in their country, but the government has been delaying decisions and pushing back the timeline. The good news is that this long-anticipated event is likely to happen in 2021.

The History of Cannabis in Israel

For a country whose history, economy, and medicine have been closely tied to cannabis for hundreds of years, Israel’s path to legal use of the plant has been a long one. It was Israeli biochemist Raphael Mechoulam who, over fifty years ago, first isolated the THC molecule and many other key cannabinoids. He was also among the first to discover and study the brain’s endocannabinoid system.

In 1999, Israel launched one of the world’s first state-run medical cannabis programs, which by 2018 had issued over 30,000 licenses for medical marijuana use. Besides Israel, only the Netherlands and Canada currently have similar federal programs. Israel is also a global leader in cannabis research.

In 2017, the Faculty of Pharmacy at the Hebrew University established the Interdisciplinary Center for Cannabinoid Research, which employs more than 27 researchers. Beyond academia, Israel is also a global hub for private cannabis research and investment. In 2016, Israeli cannabis companies received $250 million in venture funding, half of which came from American investors.

According to a Rolling Stone report, fifty American cannabis companies are currently conducting research in Israel through partnerships, joint ventures, or by hiring Israeli researchers. Fifteen American companies have gone a step further and moved their entire operations to Israel. This doesn’t even include other foreign countries looking to take advantage of Israel’s well-developed cannabis research centers and full government support.

This influx of funding has led to rapid development in Israel’s medical marijuana sector. Currently, the country is conducting between 120 and 150 clinical trials—more than any other country in the world. Nearly 300 producers and entrepreneurs have received licenses to manufacture medical cannabis.

Cannabis in Israel Today

In addition to funding medical research, Israelis are also investing in the global cannabis export market, which is projected to reach $33 billion annually by 2024. It’s expected that cannabis exports from Israel will bring in $4 billion or more each year, with revenue coming from both domestic sales and tourism.

The majority of Israelis support cannabis legalization, and 27% of the population uses it—putting Israel ahead of Iceland and the United States in terms of usage rates. Since 2014, marijuana advocates have held an annual sit-in called Big Bong Night on April 20th on the lawn in front of the parliament building. Activists play guitars, sing, and at 4:20 p.m., each lights up a joint. Thanks to their efforts, in 2017 the Knesset (Israel’s national legislative body) passed a law decriminalizing marijuana possession.

Still, despite the potential profits, history, and social support putting pressure on politicians, Israel’s president and some members of parliament delayed a legalization vote until 2016. It wasn’t until November 2020 that Israel finally drafted a bill for full nationwide legalization of marijuana, primarily based on the Canadian model.

Future Plans

Avi Nissenkorn, Israel’s Minister of Justice, announced that he would present the Knesset with a legal memorandum outlining the basics of legalization. The document will take effect within nine months of parliamentary approval, provided there are no political obstacles. This puts Israel ahead of New Zealand and Germany—two countries that recently voted against national legalization.

Although a legalization bill exists, additional details must be developed by separate government committees. The Knesset’s Special Committee on Drug and Alcohol Use will play the biggest role in shaping the law, followed by the rest of the Knesset. As with the Canadian model, the new laws will focus on public health, strict enforcement, tax distribution, and allowing legal business investments.

At first, home cultivation of marijuana will not be allowed in Israel. This is due to concerns about a surge in drug use and fears of expanding the already thriving black market. This also explains the emphasis on data tracking, law enforcement, rehabilitation of addicts, and preventing youth drug use. As in some U.S. states, a portion of tax revenue will be invested in community organizations.

Medical marijuana reforms are also included in the bill. This will improve and simplify the process for patients receiving treatment and make it easier for producers to obtain licenses. Dispensaries will likely be state-run, as in Canada, while cannabis producers will operate privately. Any Israeli citizen or tourist with valid ID proving they are at least 21 years old will be able to legally purchase cannabis at a dispensary.

Conclusion

If everything goes according to plan and Israel becomes the third country after Uruguay and Canada to legalize cannabis nationwide, what will the future of cannabis look like? Despite a cautious approach to full legalization, it’s likely that Israel’s cannabis laws will evolve even faster than those of Canada or Uruguay.

In addition to national demand and tourism revenue, Israel already has years of experience in cannabis cultivation and an incredible amount of international research and development funding. Since Canada currently dominates the international cannabis market, Israel will face strong economic pressure as it enters this space. Most likely, Israel will become a center for new strains and technologies, competing with the U.S., Canada, and the Netherlands. And that’s good news for all of us.