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vegitation
plants take in CO2 through photosynthesis while also taking up water through their roots.
photosynthesis
requires both water + CO2
transpiration affecting water movement
plants release water vapour through transpiration. this transfers water from the soil/vegetation store to the atmosphere, while vegetation simultaneously stores carbon.
Soil
soil store carbon as organic matter and water in pore spaces. changes in soil moisture can therefore affect decomposition and carbon release.
decomposition
releases CO2 as microorganisms break down organic matter. it also influences soil moisture, through very wet conditions which reduce oxygen availability.