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To achieve the announced 2060 carbon neutrality goal, the government of China has recently established its “1 + N” legal and policy framework. However, the emerging autonomous vehicle technology, which is developing rapidly, is not included. Considering the significant potential of autonomous vehicle technology in reducing carbon emissions from the transportation sector, whether and how to integrate it into the current framework can be crucial for China. The existing literature typically does not regard the emission reduction impacts of autonomous vehicles as a major issue, and there are still few studies available aiming to ensure enhancement of emission reduction induced by autonomous vehicle technology from a legal and policy perspective. This article attempts to fill the above research gaps with a three-step research scheme. Specifically, this work begins with a comprehensive and detailed analysis of the possible wide range of factors affecting energy consumption and emissions of autonomous vehicles. Next, an in-depth discussion of the feasibility of incorporating autonomous vehicle technology into the current “1 + N” legal and policy framework is provided. Finally, several recommendations corresponding to these factors are proposed from legal and policy perspectives: (i) adoption of industrial incentives to mitigate research and development costs and risks at the production level and to expand market demand at the consumption level; (ii) priority promotion of the commercialization of autonomous vehicles in the taxi market by filling legal gaps and applying regulatory measures; (iii) development of efficient transportation policies and land use policies. This article provides a systematic and practical scheme for inclusion of autonomous vehicles in China’s legal and policy framework to realize the carbon neutrality goal. The proposed recommendations can be referenced for other governments that may face similar challenges and future development of possible uniform rules at the global level.