Morgan Stanley picks 5 stocks that could get a boost if China cuts emissions

A worker pours molten iron into a mold at a mill manufacturing marine engine components in Huaian, Jiangsu province, China February 11, 2019.

China says it wants to reach net zero carbon emissions by 2060 — a move that will significantly benefit some companies in China and the U.S., according to Morgan Stanley.

Investors might be skeptical of China's claims, but the report laid out how authorities are already starting to clamp down on carbon emissions — particularly in the high-emitting industries of steel and aluminum production.

"We conclude that this drive for carbon neutrality is very serious," said analysts in a March 23 report. "The targets are not just for one city or one province, they are at the national level and are likely to be carried out in both the near term and longer term."

Morgan Stanley's top picks included these five stocks, and two of them are listed in the U.S:

More In Street Calls

CNBC ProCiti hikes Tesla earnings estimates, but still sees big drop in the stock ahead
CNBC ProHere are Thursday's biggest analyst calls of the day: Tesla, Amazon, Alphabet, Microsoft & more
CNBC ProDeutsche Bank sees a short-term trade opportunity in Ford ahead of earnings