Oil palm plays an important role in the tropical carbon cycle but is highly sensitive to climatic variability. Understanding the coupled dynamics of carbon and water fluxes in such ecosystems essential for sustainable management under variable climatic conditions. This study analyses the Water Use Efficiency (WUE) and coupled carbon–water fluxes of an 18-year-old oil palm plantation in Jambi, Indonesia, during the 2015 El Niño event using data from an eddy covariance flux tower. The analysis focused on the diurnal variations of Net Ecosystem Production (NEP), evapotranspiration (ET), and water use efficiency (WUE) during wet, dry, and dry with haze periods, which were determined based on rainfall data. Our results show that WUE reached its highest value during the dry-with-haze period (7,484 g CO₂ kg⁻¹ H₂O), more than double that of the wet (3,440) and dry (3,347) periods. This increase resulted from reduced evapotranspiration (ET) due to stomatal regulation, despite lower Net Ecosystem Production (NEP) caused by light limitation from haze. Diurnal analyses showed WUE peaking in the morning and declining at midday as the Vapor Pressure Deficit (VPD) increased (up to 0.88 kPa under haze). These findings highlight oil palm’s adaptive strategy to conserve water under stress while maintaining productivity. However, severe haze markedly weakens carbon sequestration. The results provide critical insights for optimizing irrigation and water management in the face of increasing climate variability.
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