BEIJING — A central bank official on Saturday said green financing must be improved as the country seeks greener and more sustainable growth.

In a speech delivered at a meeting on green financing, vice governor of the central bank Chen Yulu said China's green financing is still at an early stage and it has the potential to be more effective.

The investment returns on some green projects are not attractive enough, and some fields still face financing difficulties and high financing costs, Chen noted, calling for a coordinated role between the government and the market to promote green financing.

China should encourage local governments to set up green funds and work together with social capital to bring down financing costs, Chen suggested.

Innovation for financing products and services should be boosted to speed up development of green bonds, green asset-backed securitization, green indices and green insurance to offer diverse products to investors.

China should also enhance transparency in the green financing market and deepen international cooperation in the area, according to Chen.

China is pushing the development of green finance to support its industrial upgrading and anti-pollution campaign.

According to credit rating agency Moody's, green bond issues worldwide hit a record high of $93.4 billion in 2016, rising 120 percent from a year earlier, bolstered by China-based issuers.

China accounted for nearly 40 percent of new green bonds last year, followed by the United States, France and Germany, according to Moody's.