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Currently in the JRE tab of the application launcher the following options are available, "Project JRE", "Alternate JRE" and "Execution Environment". None of these allows one to base the Runtime JRE on a Variable of the launcher hosting shell, unlike the possibilities to base arguments on Variables in the Arguments tab. Support in basing the JRE Runtime on ${env:JAVA_HOME} could be facilitated through the possibility of adding a ${env:JAVA_HOME} based "Installed JRE" and selecting the latter as "Alternate JRE" in the launcher's JRE tab. This would be the most general approach and would also prevent the eclipse user from committing to a particular JRE by absolute path altogether, not only in the launcher configuration. In a less general approach the feature could be implemented by extending the launcher "JRE" tab section with a fourth configuration option.
Please file a feature request - we currently do not support this. Thanks, Darin Wright
Moving to JDT/Debug