Sustainable development is widely accepted in the world. How to reflect the sustainable development capacity of a region is an important issue for enacting policies and plans. An index system for capacity assessment is established by employing the Entropy Weight Coefficient method. The results indicate that the sustainable development capacity of Shandong Province is improving in terms of its economy subsystem, resource subsystem, and society subsystem whilst degrading in its environment subsystem. Shandong Province has shown the general trend towards sustainable development. However, the sustainable development capacity can be constrained by the resources such as energy, land, water, as well as environmental protection. These issues are induced by the economy development model, the security of energy supply, the level of new energy development, the end-of-pipe control of pollution, and the level of science and technology commercialization. Efforts are required to accelerate the development of the tertiary industry, the commercialization of high technology, the development of new energy and renewable energy, and the structure optimization of energy mix. Long-term measures need to be established for the ecosystem and environment protection.
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