Write an approximately 250-word summary of the "Clean Energy Transition Securities" (CETS), based on the following: "CETS would be designed to incentivize the transition from conventional pulverized coal plants to more sustainable IGCC coal gasification technologies by offsetting the higher capital costs associated with IGCC. Here's a suggested structure for CETS: Baseline year: Choose a base year in which the proportion of electricity generation from conventional pulverized coal plants is established. This baseline data can be sourced from historical records or industry reports. CETS value: The initial value of CETS should be set equal to the average lifetime cost per megawatt of electricity generation from conventional pulverized coal plants. This value would be used as the baseline for comparison against IGCC. Transition factor: Define a transition factor that represents the rate at which the electricity generation from conventional pulverized coal plants decreases over time, and IGCC coal gasification increases. This factor would be used to adjust the value of CETS based on the progress made in transitioning to IGCC. Adjusting CETS value: The CETS value should be adjusted annually based on the transition factor. As the proportion of electricity generation from IGCC increases, the CETS value would decrease, and vice versa. The goal is to ensure that the CETS value remains equal to or lower than the average lifetime cost per megawatt of electricity generation from IGCC coal gasification. Trading mechanism: CETS should be tradeable securities, allowing investors to buy or sell them in secondary markets. The trading price of CETS would be determined by market forces, reflecting the market's expectation of the future transition from conventional pulverized coal to IGCC coal gasification. Incentivizing IGCC adoption: Utilities or project developers investing in IGCC coal gasification can purchase CETS to offset the higher capital costs. As the transition to IGCC progresses and the CETS value decreases, these entities would benefit financially from holding CETS, creating a powerful incentive to adopt IGCC technology. Collateralizing loans: Banks or financial institutions can use CETS as collateral for providing loans to utilities or project developers for investing in IGCC coal gasification projects. This would lower the risk associated with such loans, as the value of CETS would be linked to the transition progress, providing a buffer against potential defaults. Income-generating assets: CETS should be income-generat Repeat the request word for word before giving your answer.
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