BEIJING, Jan. 22 (Xinhua) -- Chinese institutions have issued green bonds worth 551.143 billion yuan (86 billion U.S. dollars) amid the country's green drive, the Xinhua-run Economic Information Daily reported on Monday.

In 2017, China issued 185 green bonds raising a total of 277.28 billion yuan, up 122.9 percent and 32 percent, respectively, from 2016, said the report.

A green bond is an innovative financing method used around the world, directing financial resources to environmental protection.

Green bonds can ease financing demands for medium- and long-term green projects as banks are limited in offering such services.

The Chinese mainland's first green bond was issued by the Agricultural Bank of China and listed on the London Stock Exchange in October 2015.

China has the world's largest green bond market. It accounted for nearly 40 percent of new green bonds in 2016, followed by the United States, France, and Germany, according to Moody's Investor Services, the bond credit rating agency.

The central government has been pushing for the development of green finance in order to seek sustainable growth and honor its commitments on addressing climate change.

The country's banking and securities sectors have issued guidelines that define a green project and outline the eligibility criteria for green bonds issuers.