Most of the waste will be transported by barge

The Department of Trade and Industry says the plant in Belvedere, south-east London, will help tackle the city's serious waste problem.

But environmentalists from the Friends of the Earth (FoE) said it was a step in the wrong direction in the fight against climate change.

The decision follows a public inquiry looking at concerns about the plant.

Jenny Bates, from FoE, said: "The government is supposed to be promoting recycling and waste prevention but they have just allowed the biggest incinerator in Europe to be built in London."

Barge transportation

Ian Clement, the leader of Bexley Council, where the 72 megawatt capacity plant will be built, said it was "the wrong proposal in the wrong place".

He added: "The council's concerns include the massive size of the incinerator, burning waste from a wide area of London, and its potential to take away the challenge to recycle waste."

Energy Minister Malcolm Wicks said it would be fuelled by waste which would have been sent to landfill sites in the Home Counties.

He said waste would primarily be transported by barge along the River Thames.