You are right about the problem that efficiency in one place will potentially cause consumption in another. In the literature, this is usually called a 'rebound effect' or Jevons' paradox.
It may be that an emissions / extraction cap could be implemented non-globally so long as a large enough block were willing to participate, and so long as they imposed tariffs on any non-participants to price in the emissions happening on the other side of the border.
It may be that an emissions / extraction cap could be implemented non-globally so long as a large enough block were willing to participate, and so long as they imposed tariffs on any non-participants to price in the emissions happening on the other side of the border.