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This paper investigates the energy efficiency and emissions benefits possible with connected and autonomous vehicles (CAVs). Such benefits could be instrumental in decarbonising the transport sector. The impact of CAV technology on operation, usage and specification of vehicles for optimised energy efficiency is considered. Energy consumption reductions of 55% – 66% are identified for a fully autonomous road transport system versus the present. 46% is possible for a CAV on today’s roads. Smoothing effects and reduced stoppage in the drive cycle achieve a 31% reduction in travel time if speed limits are not reduced. CAV powertrain optimised for different scenarios requires just 10 kW – 40 kW maximum power whilst the vehicle mass is reduced by up to 40% relative to current cars. Urban-optimised powertrain, with only 10 kW – 15 kW maximum power, allows energy consumption reductions of over 71%.