There have been doubts about whether proceeds from Chinese green bonds are used to finance projects that truly help the environment.
For instance, the People's Bank of China and the National Development and Reform Commission allow green bonds to fund "clean" coal projects — something that many regulators overseas would not allow, according to a Financial Times report.
But as more Chinese issuers head overseas to raise funds, a greater number of green bonds from China are meeting international requirements — allowing the country to take another step in internationalizing its capital markets.
Reuters, citing "rough estimates by some industry experts," reported in March that about 90 percent of Chinese green bonds are consistent with standards used by most international investors.
President Xi Jinping spoke about China's commitment to protect the environment at the 19th Communist Party Congress this year, making it likely the country will continue to be a major player in green financing.
Amundi's de Fäy said he expects Chinese issuers to launch around $20 billion worth of green bonds per year in the years ahead.
For Credit Suisse's Chief Investment Officer Asia Pacific, John Woods, there cannot be a better Asian leader in the green bond space given the depth and breadth of China's financial system.
"China has the depth and diversity in its bonds and equity markets," he said. "It's so much harder elsewhere in Asia to get a bond issuer to do a green bond. There are not that many bonds coming out of say, the Philippines or Thailand or even Indonesia, but China is such a massive economy."