Credit ratings agency Standard & Poor's has said green bond issuance could triple to $28bn this year, providing the Chinese market takes off.
But investor appetite will continue to exceed supply, following the Paris climate change negotiations in December.
A green bond must meet stringent criteria which require the funds to be used for environmentally friendly purposes, such as clean energy or low-carbon infrastructure projects.
Businesses issued around $9.6bn (£6.8bn) such bonds last year, and are expected to issue at least $15bn this year, S&P said.
But if the Chinese green bond market takes off this year, it could add another $13bn to this figure in 2016.
"We think our estimates for market growth will prove robust given the trend for larger green bond issuances, led by Apple's $1.5bn issue in February," Michael Wilkins, credit analyst at S&P, said.
"The types of projects being financed by green bonds are also widening, with growth into water and transport."
Additional momentum could also come from US utility companies, as well as pressure on firms to disclose environmental data in their annual reports.