The other method is to offset higher CO2 emission with lower CO2 emissions in other projects locally or in other countries. This is piggy back riding on those producing less CO2.
The method tries to take into account the global concentration of CO2 instead of individual or localized emission concentrations. The Clean Development Mechanism of the Kyoto Protocol allows countries with an emission-reduction or emission-limitation commitment to implement emission reduction projects in developing countries. These projects should have additional reductions in CO2 emissions than would have been normally possible.
The Certified Emission reductions from these projects are saleable as Carbon Credits. These Carbon credits are used to offset the increased emissions of CO2 and other greenhouse gases produced in the developed countries.
Buying and selling of Carbon credits have evolved as a billion dollar market.