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The 2012 drought in Northeast Brazil was the harshest in decades, with potentially significant impacts on the vegetation of the unique semi-arid caatinga biome and on local livelihoods. Here, we use a coupled climate–vegetation model (CCM3-IBIS) to: (1) investigate the role of the Pacific and Atlantic oceans in the 2012 drought, and; (2) evaluate the response of the caatinga vegetation to the 2012 climate extreme. Our results indicate that anomalous sea surface temperatures (SSTs) in the Atlantic Ocean were the primary factor forcing the 2012 drought, with Pacific Ocean SST having a larger role in sustaining typical climatic conditions in the region. The drought strongly influenced net primary production in the caatinga, causing a reduction in annual net ecosystem exchange indicating a reduction in amount of CO _2 released to the atmosphere.