For the most part, cars are tested to the standards of the day. For example a 1988 Fiesta doesn't have to meet Euro V emissions levels.
True however there are areas such as the LEZ in London where you can only use a Euro V van or some such in. You pulling up in a 1997 Transit saying 'the LEZ didnt exist when the van was built!' wont gain you entry.
However i think you're actually onto something with the example about the Fiesta and Euro V emissions levels. If they could go round and scrap all old cars they probably would, but they cant. So the next most effective thing they can do is to ensure bangernomics doesnt make sense financially and essentially force them off the road by inventing rules which will result in the banger's demise.
They cant force your car to meet Euro V rules, but they can make owning it more inconvenient to eventually force you into a Euro V car.
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