The short of it is, without water it doesn't matter how much CO2 there is. Plants won't grow as well. Changes in climate has lead to much of the world experience more vapor deficit. Even with greening from CO2 and warming temperate/arctic regions it's resulted in a browing overall since "Peak Green" in 1998.
This is a very dangerous feedback loop to enter. 15% of the water vapor in the atmosphere is from land based evaporation and transpiration from plants. Dry plants won't transpire as much, leading to even dryer atmospheric conditions. Dryer atmospheric conditions lead to dryer plants. Less vegetation will lead to more soil compaction from rain, more erosion from wind and rain, more UV radiation reaching the soil and killing microbial life, making it less able to receive or hold moisture or deliver nutrients. Rains will runoff more instead of soak in to be re-transpired or even evaporate. Repeat ... no rinse.
Combined with the drawing down, depletion, and salt water intrusion of aquifers, water issues are looming for much of the world. Yemen isn't a model for where we want to take this world.
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