The Light Reaction
In the first part of photosynthesis, chlorophyll and other pigments in the plant, along with light energy and water, make ATP, or adenosine triphosphate, which provides usable chemical energy for use in the second reaction. O2, the two-atom oxygen molecule animals need to breathe, is released into the air. This is called the light reaction both because it requires light to work and because it converts light energy into chemical energy that can be transported and used by the plant.
The Dark Reaction
In the second part of photosynthesis, ATP's energy is used in combination with CO2 from the air breathed in by the plant and rubisco, a plant enzyme, to create sugars. This reaction, which involves a sugar-making process called the Calvin cycle, is called the dark reaction because it doesn't require direct light to happen. However, in most plants, it can only happen while the plant is exposed to light because that's when the ATP is being produced (and therefore available) to aid the process.
The Carbon Cycle
In photosynthesis, CO2 is essential. It provides the carbon and oxygen necessary for the formation of sugar molecules. The sugar provides energy for the plants as well as energy -- in the form of food -- for us. This importance of CO2 is mirrored in the world at large: without CO2, we'd have no green plants. And without these plants, we'd have no oxygen to breathe and no food to eat. Plants breathe in CO2, trap it in sugars and breathe out O2, while animals breathe in O2 and breathe out CO2. This is known as the carbon cycle.
Rising CO2 Levels
However, right now there is too much CO2 in the air. CO2 is produced by many of modern society's industrial and commercial practices, including driving and flying. Between deforestation and overproduction of CO2, our planet is not able to keep balance in the carbon cycle. The presence of too much CO2 traps heat, resulting in global warming. Both reforestation, which means more photosynthesis and CO2 absorption, and the reduction of CO2 emissions are necessary in reducing global warming.