Nation's role in global green-bond market grows bigger

China will play a paramount role in the global green-bond market as the country needs the financing channel to provide capital for environmental improvement projects, analysts said.

China has overtaken the United States as the world's largest green-bond issuer. Last year, the country issued over $30 billion green bonds, or roughly 33 percent of the $92 billion total issuance value, accounting for 65 percent of issuance value growth year-on-year in 2016, according to a report released by Bank of America Merrill Lynch in March.

Green bonds are a tool to finance environmental protection projects, including in renewable energy, energy efficiency, water treatment, waste management and electric cars.