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> what is the fundamental difference

CL's condition system is one of the (possible) applications of an algebraic effect system (implemented using delimited continuations). Schemes have dynamically typed (delimited) continuations, for example.

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But going in the opposite direction, could you not also implement arbitrary effects using conditions? (Or delimited continuations in schemes)

I am not sure about conditions (I don't know enough about CL), but the effect system of Koka (and OCaml) uses delimited continuations. So it is doable in Scheme, with shift/reset or prompt/control or whatever primitives are defined.

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