Manchester High Court has decided in favour of the Barton Renewable Energy Plant, due to be built in Davyhulme Greater Manchester.
The plant will be built opposite the Salford Reds stadium and 500m from the nearest homes.
Breathe Clean Group Chairman Pete Kilvert commented: “The air quality in Trafford is already over the legal limits. We have made an official complaint to the European Commission that several readings are 50 per cent over the legal limits for nitrogen dioxide.
“The European Commission responded to us this week and also publicly announced that it has launched legal proceedings against the UK for unsafe, illegal nitrogen dioxide levels in 16 areas, including here in Greater Manchester.
“The Breathe Clean Air Group will continue to campaign against this dirty incinerator.”