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C4 plants are characterized by possessing Kranz leaf anatomy, which is a specific structural adaptation that facilitates efficient photosynthesis in environments with high light intensity and limited water availability. This anatomy involves a distinct arrangement of the vascular bundles and specialized photosynthetic cells. In Kranz anatomy, there are two types of photosynthetic cells: the outer layer of mesophyll cells and the inner layer of bundle sheath cells.

In C4 plants, the initial fixation of carbon dioxide occurs in the mesophyll cells where it is converted into a four-carbon compound. This compound is then transported to the bundle sheath cells, where it is decarboxylated to release CO2 for the Calvin cycle, allowing the plant to concentrate CO2 around the enzyme RuBisCO. This process enhances the efficiency of photosynthesis and reduces photorespiration, making C4 plants well-suited for high-temperature and low-water conditions.

This unique anatomical feature distinguishes C4 plants from other types of plants and is crucial for their adaptation to their specific environmental niches.