Global change is shown to significantly affect the C storage function of peatlands; however, a majority of previous research is focused on a single environmental stressor such as the increased temperature. As a result, little is known about the interactive effect of multiple environmental stressors on peatland C storage, especially in sedge-dominated fen peatlands. We performed a full factorial experiment of increased temperature and elevated atmospheric CO2 concentration on minerotrophic, sedge-dominated fen monoliths to experimentally examine the individual and interactive effects of simulated future climate conditions on peatland plant biomass, CO2 exchange, and pore water dissolved organic carbon (DOC) over one full growing season. Our study demonstrates that warming and elevated atmospheric CO2 significantly increased aboveground and belowground biomass, respectively, as well as the gross ecosystem production (GEP), while the DOC concentrations and respired CO2 from peatland soils only increased under warming Our results suggest that global change will increase both plant production and microbial decomposition, but with altered plant biomass allocation between aboveground and belowground. Our study provides experimental evidence for shifts in ecosystem-level carbon dynamics under global change for a sedge-dominated peatland, and suggests that while carbon stores may weaken, the carbon sink will be maintained in these types of northern peatlands if hydrological conditions are largely maintained.