Three stocks to play in a low-carbon emissions world, according to Credit Suisse

DiyanaDimitrova | iStock | Getty Images

Green companies have encountered some weakness this year amid concerns over stretched valuations and rising inflation, but Credit Suisse believes the bull case for the group is intact.

"The long term growth drivers for Green themes remain highly compelling," the firm said Friday in a note to clients. "We see the retracement in most of the themes since the start of the year as a good opportunity for investors to (re)engage with them."

Credit Suisse believes the growth outlook for the group is "second to none" due to the investment needed to reach climate change targets — $3 trillion annually, or more than four times current levels.

The firm outlined several key themes to watch including solar, energy efficiency and hydrogen, and listed its highest conviction stock ideas related to each theme.

More In Street Calls

CNBC ProGoldman names its top global stock picks for the rest of the year
CNBC ProHere are the biggest analyst calls of the day: CrowdStrike, Alphabet, Nike, Square, Fisker, Apple & more
CNBC ProZoom Video is here to stay and its stock could climb more than 40%, Bank of America says