BERLIN (Reuters) – Germany supports the idea of the European Commission levying its own taxes to fund the expanded EU budget, Finance Minister Olaf Scholz said on Wednesday, adding new revenues could come from an expanded emissions trading scheme, a planned financial transaction tax or a yet to be discussed carbon border adjustment tax.

Speaking to French and German lawmakers in a video conference, Scholz cautioned however that the technical details of such a carbon border adjustment tax were complicated and that an agreement among EU member states would probably take one or two more years.

The European Union wants to put a tax on goods imported into the EU from countries that do not have the bloc’s ambitious goals for the reduction of CO2 emissions, to protect European companies which will have to abide by the higher standards.