Wildfire events are driven by complex interactions of climate and anthropogenic interventions. Predictions of future wildfire events, their extremity, and their impact on the environment and economy must consider the interactions between these drivers. Economic policy and land use decisions influence the susceptibility of an area to climate extremes, the probability of burning, and future decision making. To better understand how climate-driven drought events and adaptation efforts affect burned area, agricultural production losses, and land use decisions, we developed a storyline approach centered on Indonesia’s 2015 fire events, which saw significant (>5%) production losses of palm oil. We explored analogous events under three warming conditions and two storylines (multi-model ensemble mean climate change and high impact). We employed a model chain consisting of CMIP6 climate modeling to quantify climate change impacts, a wildfire climate impacts and adaptation model (FLAM) to predict burned areas, and the Global Biosphere Management Model (GLOBIOM) to predict resultant production losses and socio-economic consequences in the oil palm sector in Indonesia and, by extension, the EU. FLAM is a mechanistic fire model used to reproduce and project wildfires based on various criteria and input variables; GLOBIOM is a global economic land use model, which assesses land use competition and provides economic impacts based on scenario data. We found that total burned area and production loss can increase by up to 25% and lead to local price increases up to 70%, with only minor differences beyond 2.5 degrees of warming. Our results highlight the importance of considering the interactions of future warming, drought conditions, and extreme weather events when predicting their impacts on oil palm losses and burned area. This study sets the stage for further exploration on the impacts of land management policies on local and international environments and economies in the context of global warming.
