•Ramie fibers were degummed using steam explosion coupled with sodium percarbonate treatment.•The new degumming method shows similar ability as traditional chemical degumming method.•More than 50% chemical can be saved using new degumming method.•The new degumming method yields only 35% pollutions comparing with traditional degumming method. Ramie provides the longest and strongest natural fiber in textile industry, but its traditional degumming process is costly and requires a large amount of alkali, which causes serious environmental concerns. In the current work, a steam explosion (STEX) treatment followed by sodium percarbonate (SP) soak degumming process was investigated. Microstructure, chemical composition and mechanical properties of the refined ramie fibers were comprehensively characterized. The residual gum content was below 5%, the fineness was higher than 1600 Nm (6.25 dtex), the breaking tenacity was 5.4 cN/dex, and the whiteness was above 50%. All of the properties met the requirements of Chinese national standard, and the breaking tenacity and whiteness were notably better than those of the fibers degummed traditionally. In addition, environmental impacts of the new degumming process were evaluated. Only 50% chemicals were needed for the new process, and chemical oxygen demand (COD) of the waste reduced to 35% of the traditional method. Therefore, the new method was more environment-friendly and economically feasible. It has great potential for industry applications.