While 2020 was labelled the year of climate action, 2021 may be remembered for being a decisive year when it comes to climate finance. With the United Nations Climate Summit COP26 taking place later this year, the spotlight will be on how financial services are contributing to the fight against global warming. How far has the sector come in addressing the transition to net zero and how will it commit to ensuring a lower emissions future? 2021 has also seen continued momentum around sustainable fixed income investing. Regulation in the form of the Sustainable Finance Disclosure Regulation (SFDR), is likely to fuel ESG adoption in fixed income. It may even balance out the historic trend for equity to lead and fixed income to lag in ESG. How will regulation and continued investor interest in ESG drive this growth? And what are the main challenges?