The approval from the UK Secretary of State for Communities Eric Pickles will enable the company to commence construction as soon as possible, as part of a contract awarded in February 2013.
UBB appealed to the Secretary of State as the Gloucestershire County Council’s planning committee rejected the planning permission for the facility in March 2013.
In addition to diverting more than 92% of household waste from 600,000 residents away from landfill, the new facility can process about 190,000 tons of waste per year and generate enough energy for 26,000 homes.
Gloucestershire County Council cabinet member for waste Ray Theodoulou said: "Today’s decision means the rubbish we can’t recycle can be disposed of in a safe and environmentally friendly way.
"Our aim is to reach 70 per cent recycling across the county and stop burying waste in the ground completely. As well as this new facility, Gloucestershire will also be using anaerobic digestion to treat food waste and recycling more. This all takes us a huge step closer."
The facility is expected to avoid 40,000 tons of carbon dioxide emissions and save local people over £150m in the next 25 years.
Gloucestershire County Council planning committee chairman Nigel Moor said: "The committee robustly defended its decision to an independent inspector at the public inquiry last year. However, we acknowledge today’s announcement."
