What does it mean to be carbon neutral?

Carbon neutrality exists when the amount of carbon emmitted into the atmosphere equals the amount of carbon taken out of the atmosphere. For example, if a car emitts 100 pounds of CO₂, then the amosphere has gained that much carbon dioxide; however, should a tree absorb said CO₂, then net zero carbon will be achieved. Thus it is carbon neutral.

What are the benefits of being carbon neutral?

Climate change

Being carbon neutral means that the carbon blanket surrounding the earth can maintain a habitable earth. This deters global warming because carbon traps heat from the sun; therefore if the amount of CO₂ in the atmosphere does not increase then the earth will remain habitable.

Pollution

An exessive amount of carbon dioxide in the atmosphere can hinder life on Earth. With enough carbon, the air will become impure, thus making it difficult to breath and potentially causing health conditions.