The analysis shows that utilizing green hydrogen and electric arc furnaces in steel production or shifting to green steel produced from scrap can significantly reduce the CO2 emissions associated with producing cars in Europe. The potential for a 6.9 Mt emission reduction by 2030, equivalent to the annual emissions of 3.5 million fossil fuel cars, highlights the positive impact of adopting green steel in the automotive sector. Switching to 40% green steel by 2030 would marginally increase the sticker price of electric vehicles by €57, with the cost further decreasing to just €8 by 2040 compared to conventional steel. This cost optimization is attributed to CO2 pricing and the decreasing costs of green steel production over time. The report indicates that Europe is on track to produce up to 172 Mt of low-carbon steel annually by 2030, a quantity more than sufficient to meet the steel demand of the automotive sector, which consumed 36 Mt in 2022. Furthermore, the shift towards lightweighting in the car industry is expected to reduce the overall steel usage in the coming decade. T&E advocates for regulatory interventions to promote the adoption of green steel, suggesting that 40% of steel in new cars should be green by 2030, with targets increasing to 75% in 2035 and reaching 100% by 2040. This transition can be facilitated through the revision of the EU End-of-life Vehicles regulation, allowing carmakers to integrate the initial costs of green steel through premium car models. The automotive sector's substantial steel consumption and capacity to absorb short-term green premiums position it as a key market for promoting the shift to low-carbon steel in Europe, ultimately contributing to the sector's sustainability goals.