The issuance of green bonds by corporates could reach up to $28 billion (£19.7bn) globally this year.
If issuance continues at the rate seen in the first quarter of 2016, the figure could hit $15 billion (£10.6bn) – a huge rise from $9.6 billion (£6.8bn) issued last year, according to a new report.
If the Chinese green bond market takes off this year as analysts predict, that would add another $13 billion (£9bn) to the corporate bond issuance.
Green bonds are created to fund low carbon and clean energy projects such as wind and solar farms.
Emerging issuance by US utilities are expected to further boost the market, Standard & Poor’s states.
It adds investors’ demand for corporate green bonds will continue to outstrip supply in 2016 following commitments at the Paris climate change negotiations last December.
China and India are both said to have produced guidelines for green bond issuance after the COP21 conference.
Credit Analyst Michael Wilkins said: “We think our estimates for market growth will prove robust given the trend for larger green bond issuances, led by Apple’s $1.5 billion (£1bn) issue in February. The types of projects being financed by green bonds are also widening, with growth into water and transport.”