ABSTRACTGlobal change is altering forest carbon and water balances; however, the extent to which tree species shape ecosystem‐scale responses to climate, particularly in biodiverse forests, remains unclear. To address this, we simulated the effects of an envelope of future climate conditions on watershed carbon and water balances and quantified the contributions of tree species based on their xylem anatomy. We accomplished this by incorporating species‐level transpiration calculations into a landscape‐scale ecosystem process model. Our revised model linked the effects of forest succession, species composition, and climate change on water and carbon. Calibration of forest water fluxes using sap flux measurements and catchment water balances captured variability in species transpiration and interannual ET in biodiverse, humid temperate forest catchments in the southern Blue Ridge Mountains, USA. Across wet and dry future climate projections, ET increased, and streamflow and net carbon uptake decreased, particularly under a scenario of increasing drought. Despite accounting for just 30% of current biomass, diffuse‐porous tree species were the main driver of carbon and water flux responses now and in the future, thus intensifying the increase in ET and decline in streamflow. As diffuse‐porous biomass continues to increase, these forests will be increasingly sensitive to drought, amplifying losses of carbon sequestration and freshwater delivery.
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