Brussels has estimated the cost of complying with EU rules at €150bn per year, an amount it wants to slash by €37.5bn by 2029. It has already pared back the effects of some green legislation, for example postponing a controversial anti-deforestation law for a year.

Officials are seeking to boost competitiveness and reduce the regulatory burden on businesses during what a European commissioner called a “perilous” time.

The European Commission plans to loosen its rules on corporate sustainability reporting and supply chain transparency, it said on Wednesday, in a bid to make Europe more competitive with the United States and China.