The Environment Agency has given a permit allowing the controversial incinerator planned in Beddington to operate.
The permit sets out strict rules the Energy Recovery Facility (ERF) planned in Beddington Lane will have to operate to if it is given the go-ahead by London Mayor Boris Johnson.
The agency said the permit will ensure the plant will "not cause harm to human health or the local environment".
Sutton Council has given planning permission for waste management company Viridor to build the ERF, which will take non-recyclable waste from Sutton, Croydon, Kingston and Merton and burn it to create electricity and heat, to be built although Mr Johnson will have the final say on the project that has met opposition from campaigners who fear it will harm people's health.
Protestors have campaigned against the incinerator
The Environment Agency issued the permit this week after an assessment that included a public consultation carried out in June.
Environment Agency manager Chirs Hazelton said: "This decision follows a thorough assessment of the application we received, which included two consultation sessions and feedback from members of the public and other organisations.
"The environmental permit sets out stringent conditions that a plant must adhere to, including requirements for Viridor to comply with the relevant legislation including strict air emission and monitoring standards.
"Environmental permitting is independent to the planning process. Our role is to ensure the site will operate in accordance with UK and European legislation and that it would not cause harm to human health or the local environment."
The permit gives Viridor permission to burn 302,500 tonnes of non-hazardous rubbish at the plant each year. The plant will replace the existing Beddington Lane landfill site and will generate up to 26mw of electricity, which will power the ERF, 22mw of electricity, which will go back into the National Grid. It will also create heat and Sutton Council plans to set up its own company to distribute the heat to the nearby Felnex development.
Where the planned incinerator will be
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