Index: bin/emerge
===================================================================
--- bin/emerge	(revision 2951)
+++ bin/emerge	(working copy)
@@ -408,8 +408,14 @@
 		myopts.remove("--tree")
 
 # Set color output
-if ("--nocolor" in myopts) and (sys.stdout.isatty()):
+if "--nocolor" in myopts or \
+portage.settings["NOCOLOR"] in ("yes","true"):
 	nocolor()
+	if "NOCOLOR" not in portage.settings:
+		portage.settings.unlock()
+		portage.settings["NOCOLOR"] = "true"
+		portage.settings.backup_changes("NOCOLOR")
+		portage.settings.lock()
 
 if not ("--quiet" in myopts):
 	if not sys.stdout.isatty() or ("--nospinner" in myopts):
Index: bin/ebuild.sh
===================================================================
--- bin/ebuild.sh	(revision 2951)
+++ bin/ebuild.sh	(working copy)
@@ -51,9 +51,17 @@
 [ ! -z "$PREROOTPATH" ] && export PATH="${PREROOTPATH%%:}:$PATH"
 
 source /usr/lib/portage/bin/isolated-functions.sh  &>/dev/null
-# TODO: make this conditional on config settings, fix any remaining stuff
-set_colors
 
+case "${NOCOLOR:-false}" in
+	yes|true)
+		unset_colors
+		;;
+	no|false)
+		set_colors
+		;;
+esac
+
+
 # the sandbox is disabled by default except when overridden in the relevant stages
 export SANDBOX_ON="0"