The world needs a new source of energy, an unspillable source.

How do companies emit greenhouse gases / how can alternative energy be applied?

I was recently discussing with someone the possibility of the government installing a cap-and-trade system on American companies to reduce greenhouse gas emissions. I said that would be a baby step in the right direction, however I think we need a stricter solution, such as the development and eventually mandated uses of alternative energy (solar power, wind and tide energy, for example) instead. However, I was wondering if this is even applicable to the topic at hand? What processes exactly do happen within companies to emit so much greenhouse gas? And, could alternative energy even be substituted for the original methods of production?