German federal court defers decision on diesel bans

A federal court in the German city of Leipzig has defered a decision until 27 February on whether diesel cars can be banned or curbed from particular cities during periods when air quality is poor.

Germany's car industry had been awaiting the decision, as it could compel dozens of German cities to take measures against diesel vehicles, including cities such as Stuttgart and Munich that are home to the country's hugely powerful car industry. 

The court is hearing an appeal by two German states taken against lower courts that  suggested bans or curbs against diesel cars would improve air quality and help protect public health.

If the federal court rejects these appeals, then sales of new diesel cars are expected to plummet further amid high levels of uncertainty among consumers already shaken by Germany's emissions testing scandal.  

That could make a big impact on demand for biodiesel in the longer term, although the impact of potential bans and falling sales might not have a major short-term effect on the cummulative diesel stock.