The 47-year old taxi driver, from Eccles, Salford, was taking aid to Syria when he was kidnapped and killed by Islamic State (IS) militants in October 2014.
At the time, he was the fourth western hostage to be murdered by the group.
People in Eccles laid the ribbons in memory of Mr Henning.
A similar tribute was held in the days after his death.
Meanwhile, Eccles MP Barbara Keeley has renewed calls for Prime Minister David Cameron to officially recognise his charity work with a posthumous award.
"I think there should be some way to mark the noble sacrifice that Alan made," said Ms Keeley.
"His mission to help children in Syria was a remarkable one and, of course, he lost his life.
"I think that should be marked with some sort of formal award."
Ms Keeley said she had spoken to Mr Cameron and hoped there could soon be developments.
Prayers will also be said over the weekend at Eccles Parish Church.
A Greater Manchester town has been adorned with yellow ribbons to mark the first anniversary of aid worker Alan Henning's murder.