Wood and bio-based fuels are increasingly recognized for their role as renewable, versatile, and climate-friendly energy sources. This chapter examines the utilization of wood fuel, focusing on its carbon footprint, calorific value, and potential as a sustainable alternative to fossil fuels. Many nations are adopting bio-based fuels such as wood, biodiesel, and black liquor to meet renewable energy targets and reduce greenhouse gas emissions. In developing countries, wood remains a primary source of energy for heating and cooking due to its accessibility and affordability. When harvested and utilized sustainably, wood fuel is considered carbon neutral, contributing to climate change mitigation. The chapter also highlights India’s growing emphasis on biomass-based fuels in thermal power plants, which can foster rural economic development and support local livelihoods. Besides, this chapter discusses key aspects, including the carbon implications of wood combustion, methods for estimating its energy output, and strategies to enhance its calorific value. It is inferred that responsibly managed wood resources offer a promising pathway to balance growing energy demands with environmental conservation goals, positioning wood as a practical and sustainable alternative to non-renewable energy sources.