AbstractHabitat‐forming macroalgae are widely recognized as one of the most productive ecosystems on earth. However, relatively little is known about the variation in productivity over large spatiotemporal scales and the relative importance of environmental and biotic factors in influencing the quantity of carbon fixed. Here we leverage a large tectonic event to understand how fluctuations in the biomass of habitat‐forming macroalgae and changes in light availability influence primary productivity along 130 km of coastline over 5 years. We also quantify the effects of changes to species composition on primary productivity. This study revealed significant implications of a compromised light environment for the biomass of macroalgae and productivity rates. Immediately post‐earthquake, there was a substantial loss of biomass (an average of −83%) of a previously dominant large brown alga, Durvillaea spp., and very limited recovery of biomass over the next 5 years. Reductions in biomass coupled with changes in light attenuation resulted in average net primary production (NPP) from Durvillaea decreasing from 1130 g C m−2 year−1 before the earthquake to 192 g C m−2 year−1 after 5 years. Partial compensation of reduced NPP was facilitated by increases in the biomass of a smaller fucoid Carpophyllum maschalocarpum, but its productivity was considerably less on average, resulting in a reduction in carbon fixation. Overall, reductions in biomass resulted in a 2‐fold to 10‐fold drop in carbon fixation by canopy‐forming macroalgae over at least 5 years, while a degradation of the light environment further compromised primary productivity, and most likely detrital subsidies of organic matter to the nearshore ecosystem.