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As far as I've understood it, it's implied that the carbon offset is used to finance some of the polluting industries to reduce production some amount relative to the offset payment. But even then, the problem is that reducing the production will just result in increased production elsewhere, since the demand for their product isn't affected by the carbon offset payment.
Right. It's a big shell game made to look like things are getting done to appease any PR concerns. The very little bit that may go into actual reduction would be something like CCS for exhaust stacks, which in turn is used to increase production because, hey we're doing something about it (and using the CO2 gathered for products that end up back in the air). It does not balance out if you can get all the numbers. The annual world CO2 measurements are right there.