Carbon offsetting means that you neutralize your own carbon footprint by reducing carbon emissions elsewhere on the planet. It is a smart way to take responsibility for the carbon dioxide emissions that you cause and have not been able to bring down through changes to your own lifestyle.
The money you pay goes to climate-positive projects that would not have happened without funding from the carbon offsetting. The climate projects are mostly in developing countries, where the main focus is on replacing fossil fuels with renewable energy, such as solar or wind power, or on capturing carbon dioxide by preserving or planting forests.