The present invention discloses a method for sequestering carbon dioxide (CO2) that includes generating ammonia from an ammonium salt to make a basic ammoniated aqueous solution and using the solution to remove at least a portion of CO2 from a CO2-bearing gas and precipitate the removed CO2 as bicarbonate. The aqueous solution is recycled. Various valuable byproducts, including sodium bicarbonate, sodium carbonate, ammonium bicarbonate, and hydrochloric acid, are produced. Ammonia is generated by reacting an ammonium salt with either acidic or basic materials. Non-limiting examples of suitable ammonium salt include ammonium chloride, ammonium sulfate, ammonium bisulfate, and ammonia nitrate, those of the acidic material include ammonium bisulfate and sulfuric acid, and those of the basic material include calcium oxide, limestone, dolomite, cement kiln dust, calcium-rich fly ash, steel and iron slag, and silicate rocks or mining wastes that are rich in serpentine, olivine or wollastonite.