China replaced the US as the top issuer of green bonds in the first quarter of 2016, Moody's said in a report.
Chinese institutions issued $7.9bn worth of green bonds between January and March, nearly half of the global total, according to the credit rating agency.
The increase activity helped spur global green bond issuance to $16.9bn in the three months, nearly three times the volume seen the same period last year and above the $15.2bn seen in the fourth quarter of 2015.
Henry Shilling, a senior vice president of Moody's, reckons total green bond issuance could potentially reach $70bn this year, well above last year's record of $42.4bn and exceeding the initial projection of $50bn for 2016.
Most of the Q1 issuance was earmarked for renewable energy and energy efficiency projects, but issuance designated for clean transportation and climate change adaptation rose as a proportion of the total, Shilling said.
The US was the second largest issuer in Q1, coming to market with $3.4bn, or 20% of the global volume.
Both the public and private sector use green bonds to raise capital for projects or assets that benefit the economy, environment and society.
China's first green bond was issued by the Agricultural Bank of China and listed on the London Stock Exchange in October 2015.