Having described the wretched condition of people who know what the law demands but cannot keep it (7:21-24), Paul now declares that those who are in Christ have been set free from the Law of sin and Death (8:1-4)
Condemnation refers to a “the punishment following sentence” (BDAG). This is a rare word, only used in the New Testament here and Romans 5:16 and 5:18. In Romans 5, condemnation was the result of the first Adam’s rebellion against God. In that case, God acts as judge, finds Adam guilty and gives him the appropriate (and promised) punishment for his rebellion, death. Those who were under the law were also under the condemnation of the Law.
In Wisdom literature, this word can have the sense of people getting what they deserve. For example, in Wisdom 4:16, “The righteous who have died will condemn (κατακρίνω) the ungodly who are living, and youth that is quickly perfected will condemn (κατακρίνω) the prolonged old age of the unrighteous” (NRSV). Someone who persecutes the righteous will “get their comeuppance” and be persecuted themselves in the final judgment.
But Paul’s use here does not have the idea of recompense “but rather the principle of correspondence of deed and condition” (EDNT 2:260). The result of Adam’s sin was death because that was the natural result of his rebellion. In fact, God promised Adam that he would die if he ate from the Tree of the Knowledge of Good and Evil.
The point of Romans 7 is all those under the law fell short of the righteous requirement of the law. Since this is the case, all humans stand condemned by the law and receive the wages of that all of the “in Adam” people receive, death.
But for those who are “in Christ” do not stand condemned since they are no longer “in Adam.” The natural condemnation of the law of sin and death no longer applies to them since they have been raised to new life with Jesus (Romans 6:11). It is important to see here that Paul is saying the “in Christ” person no longer is under the natural condemnation for falling short of the glory of God. They are no longer “walking by flesh” but rather “walking by the Spirit.”
The rest of Romans 8 is going to unpack what this means, but for now I want to focus on the contrast between the “wretched man” who stands condemned (7:24) and the “in Christ” person who is not under condemnation in the least. There is something liberating about this new state in which the Christian exists.
But if we have already been set free from the law of sin and death with oppressed us prior to Christ, why do we so quickly return to that old life which stands condemned?