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Currently, the code to select the encoding and error handler of sys.stdin, sys.stdout and sys.stderr is run later in Py_Initialize(). I propose to move most of this code into _PyCoreConfig_Read() and add stdio_encoding and stdio_errors to _PyCoreConfig to easily let Python embedders to select the encoding.
Attached PR implements this idea. During Py_Initialize(), the code still reads the LC_CTYPE locale to choose the error handler if stdio_errors is NULL. This check cannot be done earlier, since the LC_CTYPE locale is only set to the user locale in Py_Initialize(): after _PyCoreConfig_Read().
The Py_SetStandardStreamEncoding() function has been added by Nick Coghlan in bpo-16129.
 This new pre-initialization API allows embedding
 applications like Blender to force a particular
 encoding and error handler for the standard IO streams.