The second phase of EEC (2005-2008) raised the total savings required to 130TWh. The UK Emissions Trading Scheme closed in 2006 and was replaced by the EU’s that aims at ensuring compliance with the Kyoto obligations. Under the EU system, member states proposed National Allocation Plans (NAPs) to the European Commission, allocating a set proportion of a country’s total 2008-2012 emission budget to sectors covered by the scheme, tradable quotas were then divided among firms (www.eea.europa.eu/pressroom/newsreleases/questions-and-answers-on-key). From 2008 all new homes must be rated against the Code and government-funded social housing (from 2010) must comply with its Level 3, which requires a 25% improvement in energy efficiency compared with 2006 regulations.