The invention discloses environment-friendly degreasant for automobile coating and an application method of the environment-friendly degreasant. The environment-friendly degreasant comprises alkaline matter, an auxiliary cleaning agent, a chelating agent, surfactant and 34%-77% of deionized water. The alkaline matter comprises, by weight, 5%-20% of sodium hydroxide and 10%-25% of potassium hydroxide. The auxiliary cleaning agent comprises, by weight, 1%-3% of sodium carbonate. The chelating agent comprises, by weight, 2%-5% of sodium citrate and 3%-6% of sodium diethylenetriamine pentaacetic acid. The surfactant comprises, by weight, 1%-3% of ester anionic surfactant and 1%-4% of fatty alcohol-polyoxyethylene ether. The environment-friendly degreasant for automobile coating is non-phosphorus alkaline environment-friendly degreasant without phosphorus or nitrogen, has the same degreasing performance with original phosphorus containing alkaline degreasant, and solves the technical problems that in the prior art, due to the fact that phosphorus containing matter exists in the alkaline degreasant, certain difficulty is caused to following process wastewater treatment, and emission and following treatment cost of pollutants are increased.