The annual cycle of growth of many temperate grasses is limited by low temperatures during the winter and spring and water stress during the summer. Climate change, induced by increase in the concentration of greenhouse gases in the atmosphere, can affect the growth and community structure of temperate grasslands in two ways. The first is directly through changes in atmospheric concentration of CO2 and the second is indirectly through changes in temperature and rainfall. At higher latitudes, where growth is largely temperature limited, it is probable that the direct effects of enhanced CO2 will be less than at low latitudes. However, interactions with increasing temperature and water stress are complex. Temperate grasslands range from intensively managed monocultures of sown species to speciesrich natural and semi-natural communities whose local distributions are controlled by variations in soil type and drainage. The different species can show marked differences in their responses to increasing CO2 concentrations, rising temperatures and water stress. This will probably result in major alterations in the community structure of temperate grasslands in the future. In addition to impacts on primary productivity and community structure, a long-term effect of elevated CO2 on grasslands is likely to be a significant increase in soil carbon storage. However, this may be counteracted by increases in temperature.;