Europe is spearheading the transition towards sustainable steel production with the concept of green steel gaining momentum. The European steel sector, historically carbon-intensive, is embracing innovative technologies like hydrogen-based steelmaking to reduce carbon emissions significantly. The market for green steel in Europe is projected to grow substantially by 2032, driven by environmental policies and the EU Green Deal, with hydrogen-based technologies playing a pivotal role. Green steel, produced through cleaner processes such as hydrogen-based direct reduction, aims to lower the carbon footprint of steel production compared to traditional methods relying on coal and coke. Countries like Sweden, Germany, and Finland are at the forefront of developing and adopting green steel technologies, positioning Europe as a global hub for sustainable manufacturing. The steel industry, a significant source of global carbon emissions, is undergoing transformation in Europe to meet the region's carbon neutrality goals. Regulatory frameworks like the European Green Deal and the Carbon Border Adjustment Mechanism are incentivizing the adoption of cleaner technologies, driving innovation in green steel production across the continent. Key players like SSAB, Thyssenkrupp, and Salzgitter AG are leading the green steel transition with investments in hydrogen-based steelmaking. Initiatives like the HYBRIT project aim to produce fossil-free steel by replacing coke with hydrogen, showcasing the potential for green steel to reshape Europe's steel industry. Hydrogen-based technologies play a vital role in decarbonizing steel production, with Europe focusing on scaling up green hydrogen production across industries. The economic and environmental implications of green steel include driving investment, creating new jobs, and fostering growth in clean energy and manufacturing sectors, highlighting the transformative impact of sustainable steel production in Europe.