CIC launches new report in Parliament calling for reform to unlock UK’s industrial hemp potential
FOR IMMEDIATE RELEASE
Cannabis Industry Council launches new report in Parliament calling for reform to unlock UK’s industrial hemp potential
New report highlights opportunities for industrial hemp to support the UK’s net zero ambitions, while warning that outdated regulations are holding back investment, innovation and domestic production.
LONDON, UNITED KINGDOM – 14 October, 2026: The Cannabis Industry Council “(CIC)”, the leading membership organisation representing the UK’s regulated cannabis sector, today announced the launch of the organisation’s newest report, Opportunities from Industrial Hemp, calling for regulatory reform and greater investment to unlock the economic and environmental potential of the UK’s industrial hemp sector. The report comes at a time when the UK faces growing pressure to meet its legally binding net zero target by 2050, with industrial hemp offering potential applications across several sectors of the economy.
Officially launched at the Houses of Parliament on Wednesday 14 October, at an event hosted by Baroness Jenny Jones, the report examines how industrial hemp could play a greater role in supporting the UK’s net zero ambitions, particularly through sustainable construction, regenerative agriculture and the development of low-carbon materials.
Authored by CIC Student Ambassador Luke Strong, the report explores the opportunities presented by hemp-based innovations, including hempcrete, road reinforcement and biofuels, while identifying the regulatory and commercial barriers preventing the UK from fully capitalising on this growing global industry.
Despite increasing interest in hemp as a sustainable agricultural crop and industrial material, the report warns that the UK’s current regulatory framework continues to create unnecessary challenges for farmers and businesses looking to enter or expand within the sector.
In particular, the report highlights the restrictions surrounding hemp cultivation licences, limited access to approved seed varieties and rules requiring farmers to destroy the flowers and leaves of the plant, preventing them from realising its full commercial value.
Among the report’s key findings:
- The report cites estimates that industrial hemp can sequester between 8 and 15 tonnes of CO2 per hectare during cultivation, highlighting its potential contribution to the UK’s decarbonisation efforts.
- The report presents a scenario in which hempcrete is used in half of the permanent homes completed in the UK in 2024, estimating potential lifetime carbon sequestration of up to 340,200 tonnes of CO2.
- The number of UK hemp licences increased from six to 136 between 2013 and 2023, reflecting growing interest in the sector despite ongoing regulatory challenges.
- Current restrictions on whole-plant utilisation, seed availability and licensing processes continue to limit domestic production and discourage investment.
- The report examines the role of private sector investment in supporting the growth of hemp-based industries, particularly as businesses increasingly seek alternatives to carbon-intensive construction materials and look to reduce emissions across their supply chains.
- The report also proposes that responsibility for industrial hemp regulation could eventually move from the Home Office to the Department for Environment, Food and Rural Affairs (Defra), bringing oversight more closely in line with the crop’s agricultural and environmental applications.
To address these challenges, the report outlines several recommendations for policymakers, including allowing greater utilisation of the hemp plant, introducing a UK-based seed approval process, improving the efficiency and transparency of licensing applications and considering an increase in the permitted THC threshold for industrial hemp to 1%.
Mike Morgan-Giles, CEO of The Cannabis Industry Council, said:
“Industrial hemp presents a significant opportunity for the UK, not only in terms of supporting our environmental commitments, but in creating new opportunities for British farmers, manufacturers and businesses. Hemp offers enormous potential across multiple industries, yet our regulatory framework continues to make it unnecessarily difficult for businesses to invest, innovate and grow.
This report makes clear that, with the right policy changes and greater collaboration between government and industry, the UK has an opportunity to develop a thriving domestic hemp sector. We hope its findings will encourage meaningful discussion about how we can move the industry forward.”
The launch event, held at the Thames Pavilion in the Houses of Parliament, brought together parliamentarians, policymakers, researchers and industry representatives to discuss the report’s findings and the future of industrial hemp in the UK.
The CIC extends its thanks to its members RX Extraction and Unyte Group for supporting the development of the report, and to Baroness Jenny Jones for hosting the parliamentary launch.
Opportunities from Industrial Hemp is available to read and download for free on the Cannabis Industry Council’s website here: https://www.cicouncil.org.uk/resources/
ENDS
About The Cannabis Industry Council (CIC)
Founded in 2021, The Cannabis Industry Council (CIC) is the leading membership organisation representing the UK’s regulated cannabis sector. The CIC brings together more than 100 member organisations spanning the full supply chain, alongside charities, clinical bodies, and research institutions working to advance the industry responsibly.
Dedicated to evidence-based policy and public education, the CIC works to raise the profile of the cannabis sector, improve patient access to medical cannabis prescriptions, and support the sustainable growth of the CBD and Hemp markets. Through collaboration, research and advocacy, the CIC believes that responsible access to medical cannabis can deliver meaningful benefits for public health, the environment and the UK economy.
For more information on the CIC, visit cicouncil.org.uk, and stay up to date on news from the CIC via LinkedIn, Instagram, and X (Twitter).
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