Friday, February 14, 2020

The Federal Ban on Marijuana Is Making It Harder for the Cannabis Industry to Go Green (Politico Morning Energy)


(WASHINGTON, DC) -- Marijuana is the nation's most energy-intensive crop and federal prohibition makes it difficult for the industry to clean up its act, Politico's Natalie Fertig and Gavin Bade report.

Roughly two-thirds of Americans now live in states with some form of legal sales. But as the market expands, regulators and activists are pushing the industry to become more efficient — and that might require federal legalization. Because marijuana is banned under federal law, cannabis cannot be regulated, nor can its environmental effects be researched by EPA. It also means it cannot be traded across state lines, leading to inefficient, indoor growing operations in states that would simply source their raw product from elsewhere were it legal, the pair reports. And in most cases, banks are banned from providing loans that would allow growers to make sustainability upgrades.

"You have this crazy supply-demand imbalance in the cannabis industry," said Allyson Browne, an independent cannabis policy consultant with a background in renewable energy. "You have markets that are being forced to produce all of their demands within their market, and that may not be the most efficient way to operate."