Several policies and geo-economic conditions will shape the energy & CO2 future of Europe. Under the Kyoto protocol Europe seeks ways to reduce greenhouse (CO2)emissions. Fact that the Eastern part of Europe is well endowed with low carbon energy resources (natural gas, biomass) is an opportunity to do so. In turn, this situation has a major relevance to the developments in industrial transformation in non-EU European countries. What policies would be required to facilitate and foster sustainable development in the whole Europe given these conditions? This is the addressed topic in this project that wants to bring together researchers (It, UK , NL, PL, CZ , RU), public policy makers and stakeholders from industry (energy, forestry) across Europe. It has the form of two workshops. The first workshop will set the stage. The second will discuss elaborated papers that inform on economics investments and carbon flows using scenarios.