A Carbon Footprint (CF) is defined as the total emissions of greenhouse gases, primarily carbon dioxide, methane, and nitrous oxide, and is a specific type of Environmental Footprint that measures human impact on the environment. Carbon dioxide emissions are a major contributor to anthropogenic greenhouse gases driving climate change. Wood, as a renewable and ecological material, has relatively low carbon emissions. The study aimed to review and analyze the criteria influencing the feasibility of constructing modern zero-carbon wooden buildings. The review was conducted in two phases: (i) a literature review and (ii) an assessment of existing buildings. The preliminary research led to (i) narrowing the focus to the years 2020–2024 and (ii) identifying key criteria for analysis: sustainable material sourcing, carbon sequestration, energy efficiency, life cycle assessment (LCA), and innovative construction practices. The study’s findings indicate that all these criteria play a vital role in the design and construction of new zero-carbon wooden buildings. They highlight the significant potential of wood as a renewable material in achieving zero-carbon buildings (ZCBs), positioning it as a compelling alternative to traditional construction materials. However, the research also underscores that despite wood’s numerous potential benefits, its implementation in ZCBs faces several challenges, including social, regulatory, and financial barriers.