Earlier quoted context omitted.
The carbon is captured when the tree grows and then released when the wood is burned. This is different from fossil fuels where it is underground.
The reason wood is considered neutral is, that most of the wood is used for construction and other stuff. If you burn it and happen to burn fossil fuel as well, nothing is neutral.
Growing a tree, cutting it down, and burning the wood is carbon-neutral. But it's very dirty when it comes to other pollutants. A catalytic converter can help.