A top German court has ruled that older diesel cars can be banned the centres of Stuttgart and Düsseldorf.
The ruling is a landmark move, which will allow many other German cities to also introduce bans to the polluting vehicles.
The ban was campaigned for by many environmental protesters who argued the change was necessary for peoples’ health. It was opposed by the German government who feared the move would lead to disruption.
“This ruling gives long-awaited legal clarity that diesel restrictions are legally permissible and will unavoidably start a domino effect across the country, with implications for our other legal cases,” said Ugo Taddei, a clean air lawyer.
The decision could have a large impact on the value of diesel cars that are affected by the ban. The change could also have Germany setting an example for many other European cities who are struggling to meet EU air quality standards.
“Note, the judge previously commented that the EU has clear rules on emissions and cities have a ‘duty’ to meet pollution targets,” said analysts at Evercore ISI.
Germany’s decision to ban older diesel cars could also lead to disruption for those who own these models. Owners will no longer be able to drive their cars and find the value of models plummet.
Car companies have already seen the market share for diesel models in Germany fall by almost ten percent in the past two years.
Sales in diesel cars are also falling in the UK due to “environmental pressures and consumer confusion,” according to automotive expert Professor David Bailey.
“The time is right for the government to take the initiative and offer up scrappage benefits to those who are prepared to ditch their diesels and switch to electric cars,” he added.
There have been greater efforts to crack down on polluting diesel vehicles since Volkswagen’s (ETR: VOW3) “dieselgate” scandal.
In 2015, Volkswagen admitted it had used illegal software to cheat US emissions tests, affecting 11 million cars worldwide.