Steel processing requires energy-efficient heat-treatment routes without compromising material performance. Traditional annealing furnaces used for low-carbon (LC) steels are energy-intensive and major contributors to CO₂ emissions, creating a need for sustainable alternatives. This study evaluates continuous electric furnace (CEF) annealing as a low-emission route to tailor the microstructure, texture, and mechanical properties of cold-rolled LC steel. Samples were annealed at 750 °C and 850 °C for 60 s, followed by comprehensive microstructural and crystallographic characterization using XRD, SEM, EBSD (IPF, GOS, KAM, ODF), hardness, and tensile testing. Annealing increased recrystallization from ~4% in the as-rolled condition to ~98% at 850 °C, reduced the mean KAM from 1.9° to 0.1°, enhanced the high-angle grain boundary fraction to 0.91, and promoted γ-fiber strengthening while suppressing detrimental θ-fiber components. The 850 °C condition achieved optimal mechanical performance (UTS × TE = 11.1 GPa%). These results demonstrate that CEF annealing enables sustainable processing with better mechanical performance in LC steels.